First Dollar Bond Issuance by Company

MUMBAI (India CSR): Piramal Capital & Housing Finance Limited (referred to as Piramal Finance), a leading diversified financial services company and wholly owned subsidiary of Piramal Enterprises Limited (PEL), has successfully issued its debut US dollar-denominated bonds in the international markets. This bond marks Piramal Finance’s first issuance in the international capital markets, providing the company access to a deep, alternative pool of liquidity to complement funds available through banks and Indian domestic capital markets.

Significant Milestone in Diversifying Funding Profile

Piramal Finance raised $300 million through this issuance. The bonds have been structured as Fixed Rate Senior Secured Sustainability Bonds at a yield of 7.95% for a tenor of 3.5 years. This transaction marks a major milestone in Piramal Finance’s efforts to diversify its borrowing profile.

Engagement with Institutional Debt Investors

For this strategic fund-raising effort, Piramal Finance engaged with institutional debt investors across Asia, Europe, and the Middle East over the past few weeks. The company also recently received its debut international ratings, a BB- rating from S&P and a Ba3 from Moody’s, both with a stable outlook. This Dollar Bond transaction follows the recently concluded $100 million social impact loan by Piramal Finance with Standard Chartered Bank.

High Demand from Marquee Investors

For the $300 million issue, the company received a 4X level of demand, with the order book peaking at $1.3 billion ahead of the release of final pricing guidance. A total of 113 investors participated in the final issuance, with 81% of the funds raised from Asia and 19% from the Middle East. The deal attracted high-quality demand, with 88% of funds raised from asset managers, 5% from sovereign wealth funds and insurance companies, 4% from private banks, and 3% from banks and others.

Sustainability Bond Guided by PEL’s Sustainable Finance Framework

The Sustainability Bond issuance is guided by PEL’s Sustainable Finance Framework, which is aligned to the ICMA Social Bond Principles. Proceeds are expected to fund impactful social projects, including affordable housing, MSME business loans, priority sector loans, microfinance, and other eligible products. Standard Chartered Bank, Barclays, and Deutsche Bank acted as Joint Global Coordinators and Joint Bookrunners, along with Axis Bank, Citi, and ENBD as Joint Bookrunners for this transaction.

Strong Debut in the Secondary Market

On the first trading day (July 23rd), the bond performed strongly in the secondary markets, with yields tightening by approximately 15 basis points to 7.80%.

“Sustainability Bond issuance fits perfectly with our mission and our investors’ intent”

Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance Ltd, said, “We are delighted to announce the successful $300 million maiden fundraise from international bond markets. Over the last few months, RBI has been guiding NBFCs to explore other sources of debt beyond Indian banks. This issuance is our attempt to open a significant new liability pool in alignment with that guidance. The core business of Piramal Finance has been to serve the borrowing needs of the Budget Customer of Bharat. This Sustainability Bond issuance fits perfectly with our mission and our investors’ intent. The resounding success of this bond issuance marks a significant milestone for Piramal Finance and reaffirms our commitment to driving inclusive growth and sustainable development.”

Key Facts on Piramal Finance’s Sustainability Bond Issuance

Issuer	Piramal Capital & Housing Finance Limited (Piramal Finance), a subsidiary of Piramal Enterprises Limited (PEL).
Issuance	Debut US dollar-denominated bonds in international markets.
Purpose	Diversify funding profile and access alternative liquidity pools.
Amount Raised	$300 million.
Bond Structure	Fixed Rate Senior Secured Sustainability Bonds.
Yield and Tenor	7.95% yield for 3.5 years.
International Ratings	BB- rating from S&P and Ba3 rating from Moody’s, both with a stable outlook.
Investor Engagement	Institutional debt investors from Asia, Europe, and the Middle East.
Demand	4X level of demand with the order book peaking at $1.3 billion.
Investor Participation	113 investors; 81% from Asia and 19% from the Middle East.
Investor Types	88% from asset managers, 5% from sovereign wealth funds and insurance companies, 4% from private banks, 3% from banks and others.
Framework	Guided by PEL’s Sustainable Finance Framework aligned to ICMA Social Bond Principles.
Use of Proceeds	Fund social projects like affordable housing, MSME business loans, priority sector loans, and microfinance.
Joint Coordinators and Bookrunners	Standard Chartered Bank, Barclays, Deutsche Bank, Axis Bank, Citi, and ENBD.
Secondary Market Performance	Yield tightened by approximately 15 basis points to 9.80% on the first trading day.
Managing Director’s Statement	Success aligns with RBI guidance to NBFCs to explore diverse debt sources and supports the mission to serve the Budget Customer of Bharat.