Indiabulls has become the first Indian real estate
company to tap the high yield market. The offering is also one
of the country’s first to include an onshore
guarantee from its parent company.
The $175 million five-year offering with a coupon
of 10.25% listed on November 13. It is guaranteed by Indiabulls
Real Estate Limited and its major subsidiaries. It was rated B+ by Fitch Ratings, and proceeds will be used to
repay financing that was used to fund its London property
The company’s ability to guarantee its bonds
distinguishes its credit from Chinese real estate developers,
which have been especially active in the high-yield market.
Chinese issuers are unable to guarantee their bonds. Although
they can include other forms of credit support, investors are