Gabriel India Plans First Local-Currency Bond for Acquisitions

Gabriel India Ltd. is in discussions with foreign banks to issue its first local-currency bond to finance a dual acquisition strategy known as Project Jupiter. The company plans to raise between 5 billion and 8 billion rupees, approximately $52.5 million to $80 million, to support the 31.7 billion rupee expansion effort intended to scale operations and broaden its product portfolio.

The proposed notes are expected to carry a coupon rate below 8% with a maturity period of three to four years. Citigroup Inc. and HSBC Holdings Plc are expected to arrange the issuance for the auto parts manufacturer.

Following the announcement of the acquisition plan, Crisil Ratings upgraded the company's bank facilities rating to AA+. The agency cited healthy cash accruals and a strong financial risk profile as the primary drivers for the upgrade.