India's JSW Steel in $325 mln convertible sale

Hong Kong, May 30: India's JSW Steel sold 5 million in convertible bonds with a conversion premium of 50 percent, according to a term sheet on Wednesday.

JSW Steel is capitalising on a nearly 65 percent increase in its share price this year and the term sheet said it would use the proceeds of the sale for capital expenditure.

JSW's bonds have a conversion price of 953.40 rupees, compared with its National Stock Exchange closing price of 635.60 rupees on May 29, with one source saying the deal was more than 1.5 times subscribed.

The five-year, zero coupon convertibles have an annual yield-to-maturity of 7.25 percent, the term sheet said.

ABN AMRO Rothschild and Citigroup are joint bookrunners on the deal, the term sheet said.

Reuters >