The Hindu Business Line : Good response to Essar’s bond issue

Mumbai, Oct. 6 The Essar Group’s Rs 4,500-crore bond issue received good response, banking sources said. The bond issue of Rs 2,250 crore by ETHL Communications Holdings, which holds part of Essar group’s stake in Vodafone Essar, with a green shoe option of another Rs 2,250 crore (aggregating Rs 4,500 crore), got fully subscribed within opening hour of its launch, an Essar official said. The bonds were offered through the book-building process. Two sets of debentures, with maturity in July and December 2011, are being issued to raise funds for Essar group’s expansion. The issue of a zero coupon bond is backed by a put option with Vodafone Group.

Fitch assigned a rating of AAA (ind) SO to the bond offering. Barclays Capital is the lead arranger to the issue together with other lead arrangers including Deutsche Bank, J P Morgan, Standard Chartered Bank, YES Bank and ICICI Bank.

The issue is scheduled to close on October 21 or earlier.

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