Indian mid-cap issues $130 million convertible bond

The CB for Amtek India comes with a 5% conversion premium and plenty of asset swaps and attracts enough demand to be upsized by 30%.

Indian mid-cap issues $130 million convertible bond
Amtek India makes cylinder blocks and other engine parts

Autoparts maker Amtek India has raised $130 million from a fixed-price convertible bond that was upsized by 30% and triggered a rally in the share price. The deal proves that it is possible for mid-cap Indian companies to raise funds in the international CB market, but it also clearly shows that these deals are not an easy sell.

The five-year CB was offered with a 6% coupon and yield, which according to a source was...

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