Indian Godrej Group firm plans third debt sale in as many months, eyeing $230 mln

MUMBAI: The holding company of India’s Godrej Consumer Products is set to tap the corporate bond market for the third time in as many months by the end of October, two merchant bankers said on Monday.

Godrej Seeds and Genetics aims to raise 20 billion rupees ($229 million) through sale of shorter duration debt, and the bonds would be issued in separately transferable redeemable principal part (STRPP) format, the bankers said.

The STRPP bonds are set to have a maturity ranging from three years to four years.

The company did not reply to a Reuters email seeking comment, while the bankers requested anonymity as they are not authorised to speak to media.

The company, which is now involved in seeds and agriculture-related trading activities, came up with is debut bond offering in July, wherein it had raised 20 billion rupees through sale of STRPP bonds maturing from two-year and nine months to three-year and six months.

It followed up with another STRPP debt issue and raised 10 billion rupees through STRPP bonds maturing in three years and three months and three years and six months at an annual coupon of 7.99%.

The bonds are rated AA by Crisil and the company may complete the fundraising before the end of October.

“The ratings continue to reflect strong financial flexibility arising from GSGL’s position as a holding company of Godrej Consumer Products, the flagship company of the Godrej group,” the rating agency said in its note.