SAMIL announces pricing of its First Dual Investment Grade USD bonds of $ 350 mn in a Debt Neutral Transaction.

Samvardhana Motherson International Limited (SAMIL) announced on July 3, 2024 that it has successfully priced 144A/Reg S 5.625% US$ senior, secured guaranteed notes aggregating to US$ 350 million (Notes) via its step down subsidiary, SMRC Automotive Holdings Netherlands B.V. (SAHN BV) and such Notes are backed by corporate guarantee from SAMIL. The fund raise by way of issuance of Notes marks return of the Motherson Group after 8 years to US$ bond market and first ever with a dual investment grade rating from two reputed international credit rating agencies i.e. Moody’s and Fitch.

The issue garnered a very strong interest from diverse set of global marquee investors with peak orderbook in excess of US$2.2 billion demonstrating oversubscription of 6 times of the issue size . This reflects the confidence of the global investor community in the credit profile and strength of the underlying business of the Motherson Group.

Transaction Highlights:

· Owing to the strong interest from investors, the Notes were issued at tight pricing translating into coupon of 5.625%. This benefits the Motherson Group in optimizing its borrowing costs.

· The issuance is debt neutral as proceeds from the same will be utilised to repay existing debt.

· The issue resulted in diversification of the debt investor base with over 96% allocations made to asset managers, insurance companies, sovereign wealth funds and balance to banks / private banks / other accounts.

· The transaction saw balanced participation from investors across regions – Asia 40%, EMEA 38% and North America 22%

The Notes shall be listed on the Frankfurt Stock Exchange.

BNP Paribas, Citigroup, HSBC, J.P. Morgan and MUFG acted as Joint Global Coordinators and Joint Lead Managers and DBS and Standard Chartered acted as Joint Lead Managers to the transaction.

Mr. Laksh Vaaman Sehgal, Vice Chairman, Motherson Group, commented, “The success of this transaction is a testament of the Motherson Group’s adherence to its prudent financial policies, underscored by recent rating upgrades by various international rating agencies. Motherson today is a strong and diversified platform to support its customers globally. We are grateful to both our customers and investors for their trust and confidence in us.”