Cyqure India, a Hinduja Group firm, raised Rs. 3,000 crore ($357.76 million) using zero-coupon bonds expiring in three years and six months in order to partially fund the acquisition of Reliance Capital subsidiaries.
High-net-worth investors, family offices, and local private credit funds submitted bids to the company earlier in the day, according to the bankers, who asked to remain anonymous because they are not authorized to speak to the media. Several bankers stated that the offering was probably structured by the private credit fund 360 One Asset.
Cyqure India, a domestic unit of Hinduja Group, offered a yield of 14.5%. The coupon will rise by 100 basis points if the credit rating slips a notch.
Care edge Ratings has assigned a BBB- provisional rating to these notes. The proceeds of the Cyqure India bond issue will be used to acquire 25.05% stake in Reliance General Insurance and 26% in Reliance Nippon Life Insurance.
Reliance Capital was taken over by the Reserve Bank of India in 2021 as a result of governance issues at the non-bank lender following its failure to make payments to creditors. IIHL was the successful bidder for Reliance Capital in February, as decided by the National Company Law Tribunal of India.