MUMBAI, June 4 (Reuters) - Two subsidiaries of India's Jubilant Bhartia Group have accepted bids worth an aggregate 56.50 billion rupees ($657.99 million) for zero-coupon bonds to fund the acquisition of a 40% stake in Hindustan Coca-Cola Holdings, three merchant bankers said on Wednesday.
Jubilant Bevco raised 30 billion rupees at a yield of 9.15%, while Jubilant Beverages raised 26.50 billion rupees at 9%, the bankers said.
Both the companies issued three-year bonds and had invited bids from investors earlier in the day.
Zero-coupon bonds do not pay regular interest. Instead, the bonds are redeemed at face value at maturity, giving investors their return on investment.
Jubilant Bhartia Group did not reply to a Reuters email seeking comment.
Hindustan Coca-Cola Holdings is the parent of Hindustan Coca-Cola Beverages, the distributor of Coca-Cola KO.N in India.
The stake acquisition will lead to an outgo of 126.50 billion rupees, which will be funded through a mix of debt, compulsorily convertible preference shares from a private capital provider, and the rest as equity from the group, Crisil said in a rating note.
Here is the list of deals reported so far on June 4:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
Jubilant Bevco | 3 years | 9.15 (yield) | 30 | June 4 | AA (Crisil) |
Jubilant Beverages | 3 years | 9.00 (yield) | 26.50 | June 4 | AA (Crisil) |
Bajaj Housing May 2028 reissue | 3 years | 7.01 (yield) | 5 | June 4 | AAA (Crisil) |
HUDCO | 3 years | 6.52 | 7.50 | June 4 | AAA (Icra, India Ratings) |
*Size includes base plus greenshoe for some issues
($1 = 85.8670 Indian rupees)
(Reporting by Dharamraj DhutiaEditing by)
((Dharamraj.dhutia@tr.com))
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