JSW Steel, a Mumbai-based multinational steel company, led by Sajjan Jindal creates history by becoming the first-ever Steel company to issue a Dollar of Sustainability Linked Bond (SLB) denomination, reported CNBC-TV18.
The steel company set a precedent for its rivals in the industry. It raised a whopping 1 billion USD in the bond market. This was initiated by issuing RegS/144A which was subscribed at greater rates by top institutional investors, arriving from Asia Middle East, Europe and the United States.
According to the 144A rule, all Qualified Institutional Buyers (QIBs) can validate the debt securities through trade with no requirement for registration and perusal by the Securities and Exchange Commission (SEC). The Reg S agreement is open for offers, sanctions and trades of securities outside the boundaries of the U.S.A. to U.S. route, including non-U.S. QIBs.
On September 15, JSW Steel experienced a surge in its bids five times compared to the previous ones in the bond market. As per a report by The Economic Times, the steel company received a phenomenal higher bids for its latest $1 billion bond overseas sales, which had commenced on Wednesday for the subscription.
The special market sources told ET that JP Morgan Fleming Asset Management, HSBC AM, Value Partners, Hong Kong-based GaoTeng, State Bank of India and Ninety One UK are the top bidders amongst others, in the USD bond market.