Wipro, the IT services behemoth, said on Thursday that its step-down subsidiary, Wipro IT Services, has secured USD 750 million through an overseas bond issue.
Wipro stated this week that on June 23, it will issue US dollar denominated notes totaling USD 750 million. On June 10, the Wipro IT Services Board of Directors accepted a proposal for the same.
“Wipro IT Services LLC (Issuer)… has raised USD 750 million by the issue and allotment of 1.50 per cent notes (Notes) to qualified institutional buyers…,” a regulatory filing said on Thursday.
The notes are guaranteed by Wipro under an indenture executed by the company and the issuer on June 23, 2021, with the trustee, payment agent, registrar, and transfer agent designated in regard to the issuing of the notes, it added.
Under the terms of the indenture, Wipro has agreed to guarantee the notes. Its possible liability under the guarantee is limited to 105 percent of the entire aggregate principal amount of the notes outstanding at the time, which is initially USD 787.5 million (guaranteed amount), according to the filing.
According to the filing, the guarantee will be issued upon complete repayment of payments owing under the notes and guarantee, subject to the guaranteed amount.
Wipro stated in prior filings that the Notes will be issued on June 23, 2021, with a maturity date of June 23, 2026. The net proceeds of the notes will be used to refinance existing debt and for general company purposes.
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Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.