Capri Global Raises $300 Million in First US Dollar Bond Issue
Key Takeaways
- •Capri Global Capital raised $300 million via its debut US dollar bond issuance.
- •The notes mature in 2029 and carry a coupon of 7.55%.
- •The offering was oversubscribed 2.3 times, reflecting strong investor demand.
- •The issuance diversifies the Indian NBFC's funding base beyond domestic borrowings and bonds.
- •Dollar bond issuance exposes the company to rupee-US dollar currency fluctuations.
Capri Global Capital has raised $300 million through its first-ever US dollar bond issuance, marking a step toward diversifying its funding base beyond domestic sources.
The notes, maturing in 2029, carry a coupon of 7.55% and were oversubscribed 2.3 times, indicating strong demand from investors for the offering.
Capri Global Capital is an Indian non-banking financial company (NBFC) that provides lending services. NBFCs like Capri Global often rely on a mix of bank borrowings, domestic bonds, and other debt instruments to fund their lending books, and accessing offshore dollar markets can broaden the range of funding sources available to them. US dollar bond issuance allows companies to tap international capital markets and access a broader pool of investors. For Indian issuers, dollar bonds also entail exposure to currency movements between the rupee and the US dollar, a factor investors typically weigh when evaluating such offerings.
The strong oversubscription of the issue suggests international investors were receptive to the credit at the offered yield, though demand for any single offering can vary with broader market conditions in the dollar debt market.
This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.
