CAPRI GLOBAL: To Issue $30 Mn Senior Secured Bonds

CAPRI GLOBAL: To Issue $30 Mn Senior Secured Bonds

- Capri Global Capital plans to issue up to 3,000 USD-denominated senior secured non-convertible bonds, with a face value of US$10,000 each, aggregating up to US$30 million. - The bonds will be issued at par through private placement to identified investors in dematerialised form. - The coupon will be 240 bps + 6-month CME Term SOFR, payable semi-annually. - The bonds will have a 36-month tenure and will be secured by a first-ranking pari-passu hypothecation charge over identified receivables. - The proposed bonds are planned to be listed on India International Exchange IFSC and/or NSE IFSC. - India International Depository IFSC is proposed to act as the registrar and transfer agent. Impact: Positive — The proposed US$30 million issuance diversifies Capri Global's funding sources and provides access to USD-denominated institutional funding through the IFSC market. However, as the bonds are secured against receivables and carry a floating-rate coupon, the key factors to monitor are funding cost, leverage and deployment of the raised capital.