Nayara Energy Limited (a Rosneft and Trafigura-UCP company), an integrated oil refining and marketing company, operating India\u2019s second largest single site refinery, raised Rs. 2,400 Crores through its maiden placement of NCDs in domestic market. Axis Bank Limited was the sole Arranger for this NCDs Issue. The Issue got over-subscribed by 60 percent over\u00a0the base size of Rs. 1,500 Crores.<\/p>\n
The proceeds of the Issue will be utilized mainly towards working capital requirements and refinancing of existing debt of the Company. The \u201cAA\u201d rated\u00a0(rating issued by CARE Ratings)\u00a0secured NCDs was offered with three-year bullet maturity.<\/p>\n
Last year in August, Russian Oil major Rosneft acquired 49.13% equity stake and Kesani Enterprises (consortium of Trafigura group and UCP PE Investments) acquired 49.13% equity stake in Nayara Energy Limited, along with captive port and power assets from Essar group at an Enterprise Value of US$ 12.9 billion.<\/p>\n
Pursuant to this equity transaction, the credit rating of the Company was enhanced by multiple notches reflecting parentage of strong shareholders, independent & empowered board, experienced management team, de-risking of operations owing to integration of assets, significant improvement in assets and liability profile and refinancing of long term debt with elongated maturity profile at competitive interest cost.<\/p>\n
Despite the stark volatility in Indian debt capital markets and subdued liquidity, the size of this maiden issuance demonstrated the confidence and appetite of institutional investors for NCDs of Nayara Energy, which is a leading international player in the oil sector.<\/p>\n
\u201cIt is a landmark event in the history of the Company being the first foray in the Indian debt capital market. The oversubscription of issue shows the confidence of investors in renewed identity of the Company.\u201d saidB Anand, Chief Executive Officer of the Company.<\/p>\n
\u201cSuccess of the debut capital market issue will open-up alternate market for fund raising which will not only provide flexibility in capital structure but will also further optimize the interest cost\u201d said\u00a0Anup Vikal, Chief Financial Officer of the Company.<\/p>\n
\u201cDespite being the maiden bonds issuance by Company and one of the largest issuance by amount in unlisted bonds category, we were able to evince significant interest from various institutional investors.”\u00a0\u00a0said Shashikant Rathi, Treasurer at Axis Bank.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nayara Energy Limited (a Rosneft and Trafigura-UCP company), an integrated oil refining and marketing company, operating India\u2019s second largest single site refinery, raised Rs. 2,400 Crores through its maiden placement of NCDs in domestic market. Axis Bank Limited was the sole Arranger for this NCDs Issue. The Issue got over-subscribed by 60 percent over\u00a0the base […]<\/p>\n","protected":false},"author":3,"featured_media":1467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[859,860,863,861,862],"class_list":["post-1466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-a-rosneft-and-trafigura-ucp-company","tag-axis-bank-limited","tag-essar-group","tag-ncds-issue","tag-rosneft"],"aioseo_notices":[],"yoast_head":"\n