Capri Loans: $300 Million Bond Issuance Completed, Listed on India INX

• Capri Global Capital Limited, operating as Capri Loans, completed its maiden $300 million offshore dollar bond issuance.
• The 7.55% fixed rate senior secured notes, due 2029, were issued under the company's $1 billion Global Medium Term Note Programme.
• The bonds are set to be listed on India INX and NSE IX within GIFT City.
• Khaitan & Co and Mayer Brown advised Capri Loans, while TT&A and Linklaters represented the arrangers.
• This transaction sets a significant precedent for Indian entities raising capital through offshore bonds listed in GIFT City.

This particular Capri Loans $300 million bond issuance holds considerable significance beyond its immediate financial implications, establishing a notable precedent for Indian companies seeking to raise capital internationally.

Capri Global Capital Limited, operating as Capri Loans, has successfully completed its inaugural issuance of offshore dollar bonds, marking a significant milestone for the non-banking financial company. This debut transaction involved the placement of $300 million in 7.55% fixed rate senior secured notes, which are set to mature in 2029. The issuance was executed under the framework of Capri Loans' broader $1 billion Global Medium Term Note Programme, providing a structured approach for future capital-raising initiatives.

The newly issued bonds are slated for listing on two prominent platforms within India's International Financial Services Centre (IFSC), GIFT City: India INX and NSE IX. This dual listing strategy in GIFT City underscores the growing importance of the financial hub for Indian entities seeking to tap into international capital markets. The successful Capri Loans $300 million bond issuance represents a strategic move to diversify funding sources and access global liquidity.

A consortium of leading financial institutions served as arrangers for this significant offering. These included Barclays Bank PLC, Deutsche Bank AG, Singapore Branch, Citigroup Global Markets Limited, Emirates NBD Bank PJSC, and UBS AG Singapore Branch. Their involvement facilitated the smooth execution of this complex cross-border financing, bringing together international investors and an Indian issuer.

The intricate legal aspects of the Capri Global Capital offshore bonds transaction necessitated extensive counsel from several prominent law firms. Khaitan & Co provided comprehensive legal advice to Capri Loans in India. Their team was spearheaded by Partner Manisha Shroff, with key contributions from Counsel Mohit Nad, Senior Associate Aparna Arya, and Associate Nandini Arya. Additionally, direct tax considerations for the deal were handled by Partner Sneh Shah and Associate Pal Jain, ensuring all domestic regulatory requirements were met.

On the international front, Mayer Brown acted as the international counsel for Capri Loans, guiding the issuer through the complexities of global capital markets regulations. This dual-counsel approach ensured robust legal oversight across both Indian and international jurisdictions for the offshore bonds.

For the syndicate of arrangers, TT&A offered Indian legal expertise. The TT&A team advising Barclays Bank PLC, Deutsche Bank AG, Singapore Branch, Citigroup Global Markets Limited, Emirates NBD Bank PJSC, and UBS AG Singapore Branch included Partner Rahul Gulati, Partner Priyanka Kumar, Managing Associate Sahil Kataria, and Associate Medha R. Lakshmi. Complementing this, Linklaters served as the international counsel for the arrangers. Their team was led by Partner Amit Singh, who also heads the India Practice and South and South East Asia Capital Markets, alongside Partner Xunming Lim. Support was provided by Managing Associate Anandee Banerji and Trainee Associates Cheryl Kwok and Geeta Vasnani, highlighting the depth of legal talent involved in this India Global Medium Term Note Programme.

This particular Capri Loans $300 million bond issuance holds considerable significance beyond its immediate financial implications, establishing a notable precedent for Indian companies seeking to raise capital internationally. It marks the first time Capri Loans has issued offshore dollar bonds under its Global Medium Term Note Programme, demonstrating a growing trend among Indian entities to leverage such programs for global fundraising. The listing of these bonds on India INX and NSE IX in GIFT City further solidifies GIFT City's role as an emerging hub for international financial transactions, offering a regulated environment for offshore bond listings.

The successful completion of this transaction, involving a substantial $300 million in Capri Global Capital offshore bonds, offers valuable insights for future cross-border financing endeavors. Legal professionals advising clients on international capital markets or similar financing structures should meticulously analyze the deal's framework and the collaborative efforts of the involved counsel, including Khaitan & Co, TT&A, Mayer Brown, and Linklaters. The structure of this India Global Medium Term Note Programme and the specific listing choices in GIFT City provide a blueprint for other Indian companies contemplating similar capital-raising strategies. This deal underscores the increasing sophistication of Indian issuers in accessing global debt markets and the critical role of specialized legal expertise in navigating these complex international transactions.

This transaction provides a significant precedent for Indian entities looking to raise capital through offshore dollar bonds under a Global Medium Term Note Programme, particularly with listings in GIFT City. Lawyers advising clients on international capital markets or cross-border financing should analyze this deal's structure and the counsel involved for insights into similar future transactions.

Source: Original reporting via Legal News Wire