Mumbai: Sammaan Capital, formerly Indiabulls Housing Finance, has raised $450 million through a five-year dollar bond at a coupon of 7.50% in its first international issuance following Abu Dhabi-based International Holding Company’s (IHC) $1-billion investment.
The investment, executed through IHC affiliate Avenir Investment RSC, gave the Abu Dhabi entity a 43.46% stake in Sammaan, positioning it as the company’s new promoter, first reported by Economic Times on October 2.
The bond builds on Sammaan’s $300-million three-year issuance in August, which tightened sharply from 8.95% to about 7% in the secondary market after the IHC deal became public. Moody’s this week placed Sammaan’s long-term corporate family rating under review for upgrade after IHC’s investment.
The strong secondary performance and positive investor sentiment prompted the company to seize the window and raise longer-tenor funds at a lower cost, people aware of the development said.
After adjusting for tenor differences, as the previous bond had three-year tenor vs five year in the new one, the effective reduction in funding costs is around 200 basis points.
“Investor demand was strong with the issue oversubscribed more than three times and attracting participation from over 70 global investors across Asia, Europe, and the Middle East,” one of the sources said.
Investors included BlackRock, PIMCO, HSBC Asset Management, AllianceBernstein, Wellington, Goldman Sachs, and DBS, the person said.
The proceeds from the bond will support general corporate purposes and growth initiatives, including expansion in the affordable housing segment.
Sammaan’s total outstanding international bonds now is around $1.1 billion.
The company was incorporated in 2005. In June 2024, it received RBI approval to operate as an NBFC-ICC and was rebranded to show institutional shift and separation from the Indiabulls group.
Sammaan Capital’s latest issue builds on its $300 million three-year bond from August, which tightened sharply from 8.95% to about 7% in the secondary market following IHC investment, said Sameer Gupta, head, India & South East Asia DCM at Deutsche Bank. “The earlier paper has been trading above par, which prompted the company to seize the window and lock in longer-tenor funding at tighter levels,” he said.
The deal comes amid increased appetite for Indian high-yield paper as global yields remain stable and dollar liquidity supports emerging market credit. Varanasi Aurangabad NH-2 Tollway and Vedanta Resources completed dollar deals recently, while Muthoot Finance tapped its $600-million outstanding notes for an additional $150 million, pricing the tap at 5.865% versus 6.375% for the original issue, which was nearly 100-basis-point tighter.
The investment, executed through IHC affiliate Avenir Investment RSC, gave the Abu Dhabi entity a 43.46% stake in Sammaan, positioning it as the company’s new promoter, first reported by Economic Times on October 2.
The bond builds on Sammaan’s $300-million three-year issuance in August, which tightened sharply from 8.95% to about 7% in the secondary market after the IHC deal became public. Moody’s this week placed Sammaan’s long-term corporate family rating under review for upgrade after IHC’s investment.
The strong secondary performance and positive investor sentiment prompted the company to seize the window and raise longer-tenor funds at a lower cost, people aware of the development said.
After adjusting for tenor differences, as the previous bond had three-year tenor vs five year in the new one, the effective reduction in funding costs is around 200 basis points.
“Investor demand was strong with the issue oversubscribed more than three times and attracting participation from over 70 global investors across Asia, Europe, and the Middle East,” one of the sources said.
Investors included BlackRock, PIMCO, HSBC Asset Management, AllianceBernstein, Wellington, Goldman Sachs, and DBS, the person said.
The proceeds from the bond will support general corporate purposes and growth initiatives, including expansion in the affordable housing segment.
Sammaan’s total outstanding international bonds now is around $1.1 billion.
The company was incorporated in 2005. In June 2024, it received RBI approval to operate as an NBFC-ICC and was rebranded to show institutional shift and separation from the Indiabulls group.
Sammaan Capital’s latest issue builds on its $300 million three-year bond from August, which tightened sharply from 8.95% to about 7% in the secondary market following IHC investment, said Sameer Gupta, head, India & South East Asia DCM at Deutsche Bank. “The earlier paper has been trading above par, which prompted the company to seize the window and lock in longer-tenor funding at tighter levels,” he said.
The deal comes amid increased appetite for Indian high-yield paper as global yields remain stable and dollar liquidity supports emerging market credit. Varanasi Aurangabad NH-2 Tollway and Vedanta Resources completed dollar deals recently, while Muthoot Finance tapped its $600-million outstanding notes for an additional $150 million, pricing the tap at 5.865% versus 6.375% for the original issue, which was nearly 100-basis-point tighter.
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