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| Vedanta’s $1.7 billion long 5-/10-year bond offering | |
| Bookrunners | RBS, BAML, Barclays, Citi, JPMorgan, Standard Chartered |
| return to the Deals of the Year 2013 index | |
Vedanta and its bookrunners gave the market a lesson in how to get a deal done in volatile times both through its opportunistic timing and the deal’s execution.
Announcing on May 16, Vedanta began a three-team global roadshow. The company chose a relatively quiet week without a public holiday or much in the way of data announcements in order to avoid damaging exposure to potential market volatility. And it came as the markets had staged a massive rally from May 3 as a result of better than expected US non-farm payrolls data and rate cutting by the ECB. The risk-on sentiment drove US Treasury yields higher, and on the back of the more positive sentiment, Vedanta launched the deal on May 21 to lock in US Treasury yields before they rose even further.
The deal was announced in the morning in the US in order to build momentum in the US investor base. The order book grew quickly, bringing in $2.2 billion and setting the stage for the opening in Asia. By 2pm in Hong Kong, the book broke through the $5 billion mark and the final order book stood at $7.2 billion for the five-year tranche and $3.3 billion for the 10-year.
The deal became the largest ever corporate bond from India, the lowest-ever coupon achieved in both tenors for a high yield Indian credit in US dollars. It was also the largest ever nongovernment/quasi-sovereign corporate bond from both south and southeast Asia.
