A group of Indian companies get the chance from the sell-offs in the offshore bond market. This is to purchase back the bonds in order to optimise cost. Due to the risk of aversion from Russian invasion to Ukraine, there is a sharp spike in the US dollar bond yields. Thus, Indian companies announce tender offers to manage the next 12 to 24 months maturities. The head of DCM origination at JP Morgan India, Anjan Agarwal affirms this. Shriram Transport Finance had announced about the offer in cash tender to buy up to $75m of the $75m outstanding. The firm also plans to buy all of 5.95% bonds or $750m which is due in October 2022.
The company plans to purchase the 2025 notes via Dutch auction. This is between $900 and $930 per $1.000. The principal amount includes the early-bird fee of around $30. Based on the analysts, the company is confident about the 2025s. Especially when it was trading at the cash price of 91 to yield 7.61%. But the non-bank lender did not reply to the email regarding the comments. An analyst from CreditSights, for Asia Pacific, Yustina Queck gives argumentation. She said that Shriram revisits its asset and liability management profile.
This is to manage the debt obligations ahead of maturities. The attempt is to minimise the near-to-medium-term offshore funding costs. Market volatility these days lead to the hedging cost because Rupee is weak. Bharti Airtel International, the telecom company also launched the tender offer. The total is around $200m of its $477m around 3.75% bonds in the sell-offs. The due date is going to be in 2023.
The non-bank lender IIFL Finance has bought back around $50m of the $324m outstanding for the 2023 bonds. The cost calculation drives this repurchasing. A Singapore-based analyst at S&P, Neel Gopalakrishnan, said that the sell-off in the bond market. This is with the trading price below par.