MUMBAI: HCL Technologies will raise $500 million in an overseas bond sale, the company said in a BSE notification Thursday citing its board approval. This could be the first not only for the country’s third-largest software company by market value but also for the exports-oriented outsourcing industry where India is a global leader.
ET on Feb 15 wrote that the software company was planning to raise overseas funds.
“This is to inform you that HCL America Inc., a wholly owned step-down subsidiary of the company…has approved the proposal for issuance of USD denominated fixed rate, senior unsecured notes aggregating to an amount not exceeding USD 500 million,” the company said.
Financing an offshore acquisition could be one of the motives of the proposed issue. The bonds may be launched as early as next week.
“The net proceeds of the Notes are intended to be utilized for refinancing the existing debts and for general corporate purpose of the Issuer and other affiliates of the Issuer outside India,” the company said.
The bonds are proposed to be listed on the Singapore Stock Exchange.