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The investment, executed through IHC affiliate Avenir Investment RSC, gave the Abu Dhabi entity a 43.46% stake in Sammaan, positioning it as the company’s new promoter, first reported by Economic Times on October 2.
The bond builds on Sammaan’s $300-million three-year issuance in August, which tightened sharply from 8.95% to about 7% in the secondary market after the IHC deal became public. Moody’s this week placed Sammaan’s long-term corporate family rating under review for upgrade after IHC’s investment.
Sammaan Capital, formerly Indiabulls Housing Finance, has successfully raised $450 million through a five-year dollar bond. This marks their first international issuance after a significant investment from Abu Dhabi’s International Holding Company. The bond was issued at a coupon of 7.50%. Investor demand was robust, with the issue being oversubscribed more than three times.
The strong secondary performance and positive investor sentiment prompted the company to seize the window and raise longer-tenor funds at a lower cost, people aware of the development said.
After adjusting for tenor differences, as the previous bond had three-year tenor vs five year in the new one, the effective reduction in funding costs is around 200 basis points.
“Investor demand was strong with the issue oversubscribed more than three times and attracting participation from over 70 global investors across Asia, Europe, and the Middle East,” one of the sources said.Investors included BlackRock, PIMCO, HSBC Asset Management, AllianceBernstein, Wellington, Goldman Sachs, and DBS, the person said. The proceeds from the bond will support general corporate purposes and growth initiatives, including expansion in the affordable housing segment.
Sammaan’s total outstanding international bonds now is around $1.1 billion.
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