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)