Biocon Biologics Limited (BBL), a subsidiary of Biocon Limited, successfully refinanced its USD 1.1 billion (INR 93,468 million) long-term debt through the issuance of USD 800 million (INR 66,763 million) senior secured notes, due 2029, at a coupon rate of 6.67%. These bonds mark the largest high-yield debut USD bond issuance from India in the last decade. The bonds, expected to be rated BB by both S&P and Fitch, will be listed on the Singapore Stock Exchange and are set to settle on October 9, 2024, subject to standard closing conditions.
The company has also secured a new syndicated debt facility, and the refinancing aims to improve BBL’s liquidity profile, optimize its capital structure, and provide financial flexibility. The refinancing process saw strong participation from global investors, with an order book that peaked at over USD 2.5 billion (INR 208,634 million), representing an oversubscription of over three times the issue size. The investor base was well-diversified across geographies, with contributions from the U.S. (47%), EMEA (27%), and Asia (26%).
The bonds are part of BBL’s strategy to enhance financial flexibility and growth, particularly for reinvestment into the biosimilars business. BBL, a global biosimilars company, has commercialized eight biosimilars in major markets, with a pipeline spanning multiple therapeutic areas. The refinancing underscores BBL’s commitment to advancing its product pipeline and strengthening its capital structure.
