Mumbai: Developer Emaar MGF Land raised Rs 2260 crore ($404.37 million) through a private placement of bonds with a coupon of 11.25%, a source with direct knowledge of the deal said on Monday.
The firm will use the proceeds to redeem fully convertible debentures issued by Emaar to Horizon India B.V., along with accumulated premium, interest and taxes, the source said.
The firm has placed seven-year bonds that will redeem via three staggered equal installments starting from the fifth year, said the source.
The issue, which has a long-term rating of “BB-” by CARE, has been placed with foreign institutional investors, the source said.
The firm will create and maintain a minimum asset cover of 100% during the tenure of the private placement.