India's HPCL-Mittal Energy plans to raise 10 bln rupees via debt

Last Updated: Fri, Aug 10, 2012 04:20 hrs

MUMBAI, Aug 10 (Reuters) - India's HPCL-Mittal Energy is planning to raise 10 billion rupees ($180.75 million) through 10-year bonds at a yield to maturity of 10.90 percent, three sources with direct knowledge of the deal said on Friday.

The unlisted secured bonds have a 8- to 10-year separately tradable registered principal parts (STRPP) and pay a 4 percent coupon and a premium on maturity, they added.

Barclays Capital, Kotak Mahindra Bank and Axis Bank are arrangers to the deal, the sources said. The bonds are rated "AA-(ind)" by Fitch Ratings India.

The proceeds of the issue will be used to prepay part of HPCL-Mittal Energy's existing rupee term loans, Fitch said.

HPCL-Mittal Energy Ltd (HMEL) is a joint venture between state-run Hindustan Petroleum and Mittal Energy.

Last week, HMEL's subsidiary HPCL-Mittal Pipeline raised 10-year bonds at 10.75 percent. ($1 = 55.3250 Indian rupees) (Reporting by Archana Narayanan; Editing by Rafael Nam)

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