Biocon Biologics refinances $ 1.1 bn long-term debt through USD bonds and new syndicated facility
The Bonds are expected to be rated BB by both S&P and Fitch and will be listed on the Singapore Stock Exchange
Biocon Biologics, a subsidiary of Biocon, announced the successful pricing of Biocon Biologics’ debut $ 800 million (Rs 66,763 million) senior secured Notes due 2029 at a coupon of 6.67 per cent. The Bonds will be issued by Biocon Biologics Global which is a wholly owned subsidiary of Biocon Biologics and will be backed by a strong security package. The Bonds are expected to be rated BB by both S&P and Fitch and will be listed on the Singapore Stock Exchange. The transaction is expected to settle on October 09, 2024 subject to customary closing conditions.
Peak orderbook in excess of $ 2.5 billion (Rs 208,634 million) demonstrated an oversubscription of over 3x of the issue size. The final orderbook is well diversified in terms of investor type across fund managers, institutions, banks, and others as well as geography with the US constituting 47 per cent, EMEA 27 per cent and Asia 26 per cent.
BofA Securities, Citigroup, HSBC and Standard Chartered Bank acted as Joint Global Coordinators, Lead Managers and Bookrunners and BNP PARIBAS and Mizuho acted as Joint Lead Managers and Bookrunners.
Additionally, Biocon Biologics has entered into a commitment agreement for a new syndicated debt facility. The proceeds of the Bonds, together with the new syndicated debt facility being raised, will be used to substantially re-finance existing debt of $ 1.1 billion (Rs 93,468 million) which aims to help improve the Company’s liquidity profile, provide financial flexibility and opportunity to re-invest the cash into the business.
Shreehas Tambe, CEO and MD, Biocon Biologics, said, ” We expect this transaction to strengthen our capital structure and allow us to re-deploy investments into the business, including advancing our differentiated pipeline of biosimilars. It will also enable us to diversify our investor base to include marquee global funds and healthcare investors who seek to participate in Biocon Biologics’ growth story.”
Kedar Upadhye, CFO, Biocon Biologics, said, “This successful debut bond issuance by Biocon Group at a global level highlights the strong credit profile of the biosimilars business.”
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