Herbert Smith Freehills has acted as international counsel to Australia and New Zealand Banking Group Limited, DBS Bank Ltd., The Royal Bank of Scotland plc and Standard Chartered Bank, as joint lead managers in relation to the issuance of S$250 million 4.25% notes (the “Notes”) due 2016 by Tata Communications (Netherlands) B.V., which were guaranteed by Tata Communications Limited.
Tata Communications Limited along with its subsidiaries (“Tata Communications”) is a leading global communications provider. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multinational enterprises, service providers and Indian consumers.
This transaction marked the first Note issued by a non-bank Indian corporate in the Singapore dollar-denominated capital markets this year. It was also the first time that an unrated India corporate has been able to raise funds in the international capital markets. The three year term notes were priced at the lower end of the guidance and received an overwhelming response from investors, resulting in them being 14 times over-subscribed.
The Herbert Smith Freehills team was led by capital markets partner Philip Lee, who was supported by senior associates Felipe Duque and Simon Barrell, and associates Nupur Kant and Yuji Huang. Head of India group Nimi Patel also advised on the transaction.
Nimi Patel commented:
“We are delighted to have worked on this transaction with Tata Communications and to have helped them achieve such a successful offering. Indian banks and companies are increasingly looking to issue debt in currencies other than the U.S. dollar as they seek to diversify their investor base. This deal has certainly opened the door for other unrated Indian corporates to tap into the Singapore dollar market.”
Philip Lee commented:
“This is a landmark transaction for Singapore, Tata Communications and all other parties involved, as it is the first time that an unrated Indian corporate has been able to raise funds in the international capital markets. Herbert Smith Freehills has one of the strongest capital markets teams in the region and is increasingly seen as the “go to” firm for landmark transactions such as the one announced today. We are very pleased to have built a strong reputation in that respect and we look forward to supporting more companies tap into the Singapore dollar capital markets.”
Among other landmark transactions, Herbert Smith Freehills’ debt capital markets team has recently acted for:
- The Hongkong and Shanghai Banking Corporation Limited, Mitsubishi UFJ Securities International plc and Standard Chartered Bank on the establishment of a US$1.5 billion Euro Medium Term Note Programme and the first issue of US$500 million 3.75% notes due 2017 issued under such programme. This programme marks the first ever Regulation S EMTN programme established in Indonesia;
- The Royal Bank of Scotland plc as lead manager in relation to the issue of S$50,000,000 4.30% senior notes due 2018 by Tata International Pte Ltd and guaranteed by Tata International Limited;
- Citigroup Global Markets Limited and Standard Chartered Bank as joint lead managers and bookrunners, and BT Bahana Securities as co-manager on PT Bank Rakyat Indonesia (Persero) Tbk’s US$500 million notes issue;
- Standard Chartered Bank as the arranger and dealer on the establishment of a S$750 million Euro Medium Term Note programme by LMIRT Capital Pte Ltd and the first two fixed rate note issues under that programme;
- Export-Import Bank of China on its issuance of RMB2 billion (US$318 million) bonds; and
- Wing Lung Bank on the establishment of US$2 billion Regulation S Euro Medium Term Note Programme, and the issue of US$200 million 3.50% subordinated notes under that programme listed on the Singapore Stock Exchange.
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