South Asia

Tata Steel’s attempt to reprice a portion of a $3.1bn loan sealed in 2014 has run into delays, which bankers are attributing to a lack of communication by the borrower as well as concerns about the steel sector. This has prompted some lenders to rethink what a reasonable cut on pricing would be.

India’s state banks will shoulder the heaviest burden in the industry’s challenge to raise $140bn of new capital over the next four years to meet Basel III regulations, according to Fitch. Public banks face steep medium-term obstacles such as poor balance sheet assets, falling capital generation capabilities and overdependence on state support, it said.

Syndication for a $274m loan for Indian pharmaceutical company Strides Arcolab is under way, with one lender at the helm. The proceeds are for the company’s acquisition of Aspen’s generic pharmaceutical business in Australia.

The Indian Renewable Energy Development Agency (IREDA) is planning to sell Rp6bn ($90.6m) worth of tax-free bonds this month, expected to be labelled green. The debut issue will be followed by a larger Rp14bn deal in November.

Sadbhav Infrastructure Project is likely to price its Rp4.9bn ($74m) IPO at the top of its indicative price range, according to bankers on the transaction.

ONGC Videsh,the international arm of India’s Oil and Natural Gas Corp, has sent out a request for proposals for a $750m refinancing with an undisclosed greenshoe.

The Reserve Bank of India (RBI) has named two banks as systemically important, which will require the pair to meet more stringent capital requirements from April 2016.

Under pressure from a volatile market, India’s Prabhat Dairy has cut the size of its IPO and extended bookbuilding until the end of the week in a bid to keep the deal afloat. While Prabhat had to pay the price, bankers in the country say their faith in the pipeline has not been shaken, writes John Loh.

Foreign investors breathed a sigh of relief this week after India announced it will not be subjecting them to minimum alternate tax (MAT).

The Securities and Exchange Board of India (Sebi) is planning to streamline the country’s debt capital markets by making details of onshore bond transactions available online. The move has been largely welcomed as it will inject some much-needed transparency into India’s markets while hopefully wooing more foreign investors, writes Narae Kim.

Cigarette maker Philip Morris flagged off pre-deal investor education for an up to Rph26.70tr ($1.92bn) follow-on transaction in its Indonesian subsidiary HM Sampoerna on September 2, with the process set to run for two weeks.

The Indian government scored a big coup last week, selling a stake in Indian Oil Corp (IOC) on a day when markets globally were roiling in volatility. But the fact that it relied on the Life Insurance Corporation of India (LIC) to push the deal through is wrong, and casts a shadow on the country’s divestment programme.