By Khushi Malhotra and Dharamraj Dhutia
MUMBAI (Reuters) -India’s Auro Realty, the real estate arm of Aurobindo Group which also owns drugmaker Aurobindo Pharma, is planning to raise 20 billion rupees ($225.41 million) through the sale of bonds to fund a key acquisition, two merchant bankers said on Tuesday.
Auro Realty is looking to issue two-year and four-year bonds, with the coupons ranging from 11%-15%, the bankers added.
“It is a promoter-level financing to acquire some of the assets, including Hotel Taj Banjara Hyderabad,” one of the bankers said.
The group did not reply to a Reuters email seeking comment, while the bankers requested anonymity as they are not authorised to speak to the media.
Auro Realty’s bond issue is in advanced stages and could be completed as early as this month, while private credit funds are expected to be investors, the bankers added.
The bond issue adds to a rising trend of firms tapping the corporate bond market to fund large acquisitions.
($1 = 88.7275 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Eileen Soreng)
