Informist, Tuesday, Dec 13, 2022
–Sources: Andhra State Beverages eyes second govt-guaranteed issue
–Andhra State Beverages aims at least 5-bln-rupee via bonds
–Andhra State Beverages seeks govt-guaranteed bond bids Mon
By Subhana Shaikh
MUMBAI – Andhra Pradesh State Beverages Corp Ltd plans to tap the debt market with another tranche of state government-guaranteed bonds on Monday, a note accessed by Informist showed.
The company intends to raise up to 36.95 bln rupees through the bonds maturing up to 10 years. The issue has a base size of 5 bln rupees and a greenshoe option of 31.95 bln rupees.
Bidding for this issue will take place on BSE’s electronic bidding platform on Monday.
The issue carries a separately transferable redeemable principal parts structure, with a fixed quarterly coupon of 9.62%.
The bonds are rated AA(CE) by India Ratings and AA+(CE) by Acuite Ratings and will be allotted on Dec 21. The bonds will be listed on the wholesale debt market segment of the BSE.
Proceeds of the issue, after payment of issue-related expenses, would be used by the company for implementing socio-economic programmes, in accordance with the provisions of the Memorandum of Association and Articles of Association, the note said.
The issuer proposes to raise debt resources through securitisation of net revenue including landed cost, margin and special margin made available to it.
“Servicing of these bonds would be exclusively from the amount received as net revenue. These bonds would be raised on the balance sheet of APSBCL with a completely ring-fenced servicing mechanism through an escrow on the net revenue receivables,” the note said.
In early June, Andhra Pradesh State Beverages had tapped the bond with a similar mechanism and had raised 83.05 bln rupees through its maiden offering of state government-guaranteed bonds at a coupon of 9.62%.
The bonds, carrying a separately transferable redeemable principal parts structure will mature on May 31, 2032. The issue had a base size of 20 bln rupees and a greenshoe option of 100 bln rupees.
Andhra Pradesh State Beverages Corp was incorporated in 2015 to carry on the business of wholesale and retail trade in alcohol, and all other alcohol and spirits suitable for industrial use on behalf of the Government of Andhra Pradesh. End
Edited by Maheswaran Parameswaran
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