UPL limited is an agrochemicals major. The form plants to raise around dollar 500 million through a dollar bond issue. The money raised by the issue will be used to repay bonds maturing in 2021. This would make it the first private Indian company to tap the dollar bond market overseas after the disruption caused by covid-19 in the regular businesses. The company is taking assistance from JP Morgan, UBS, Bank of America and citi. effort to raise funds can be considered as an indicator that things are moving forward for Indian companies as lock down slowly lifted.
Adani electricity Mumbai limited and IIFL finance limited were the last companies which raised funds through this route in February. UPL limited No such transaction has happened since then.
Last month, rec limited raised funds amounting to dollar 500 million through dollar bonds. This issue made it the first Indian company to raise funds in the dollar bond market since the spread of coronavirus.
Fitch ratings also has assigned BBB rating to you people corporation’s proposed US dollar senior unsecured notes. UPL limited Its proceeds will be used for debt repayment. It also affirmed the Mauritius based company’s long term issue default rating. The agency notes of the fact that the pandemic has had little impact on the company’s production and market demand. The firm continues to operate despite restrictions and the nationwide lockdown. However, its utilisation rates dropped to near 70% in April as compared to 90% during the the same period last year. This is mainly due to the distortions in supply of raw material and labour.