| Update regarding debt securities of Reliance Power Limited |
In continuation to the Exchange Notice No. 20181116-29 dated 16 Nov 2018 regarding suspension of debt securities of Reliance Power Limited, Trading Members are requested to note that w.e.f. Tuesday, November 27, 2018, the following Scrip Code would be available for trading under the revised terms:
Scrip Code: 957798
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Term
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Existing
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Revised
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Coupon Rate
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12.18% p.a. Payable Semi-Annually
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Coupon: Benchmark plus spread payable Semi Annually
Benchmark: 5 years Semi Annual YTM Yield Curve published by Financial Benchmarks India Private Limited, under FBIL GOI Base/Par Yield.
Spread: [6.45%]
Currently, the said 5 year Semi Annual YTM Yield is 7.87% p.a., therefore the current effective pricing is [14.32] % p.a. Payable Semi-Annually
The Coupon Rate is proposed to be modified w.e.f. [November 1, 2018]
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Coupon Reset Date
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Refer to “Rating Related Covenants”
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The Coupon shall be reset on December 28, 2018 and every 3 months thereafter (ie, on March 28/June 28/September 28/December 28, as the case may be)
In the event the Coupon Reset Date falls on a Sunday or a public holiday (as defined in the Information Memorandum), the Coupon Reset Date shall be on the immediately previous working day (i.e. a day on which scheduled commercial banks are open for business in the city of Mumbai, Maharashtra)
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Rating Related Covenants
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(a) Step Up
In the event the Credit Rating of the Debentures, is revised to ‘BBB-‘by any Rating Agency (whether publicly or privately) including new assignments for existing and/or additional long term borrowings, the Coupon Rate, shall be immediately revised upwards by 25 basis points (0.25% p.a.). The revised Coupon Rate shall be effective on and from the date on which the rating downgrade and/or new assignment occurs.
(b) Accelerated Redemption
If the Credit Rating of the Issuer falls below “BBB-“ by any rating agency (whether publicly or privately) or if the credit rating is withdrawn (unless substituted with a credit rating from a rating agency acceptable to the Majority Debenture Holders), each Debenture Holder shall have the right to ask for an Accelerated Redemption of the NCDs and such redemption will be made by the Issuer within 7 working days of the Debenture Holder making such a request.
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(a) Step-down/Step-up
In the event the Credit Rating of the Debentures, is upgraded/downgraded by any Rating Agency (whether publicly or privately) including new assignments for existing and/or additional long-term borrowings, the Spread, shall be immediately revised downwards/upwards as per the below the table. In no case the spread would reduce below the spread mentioned against the rating of BBB.
The revised Coupon Rate shall be effective on and from the date on which the rating upgraded/downgrade and/or new assignment occurs.
Below is the spread matrix for various ratings:
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Rating
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Spread
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BBB
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495 bps
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BBB-
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545 bps
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BB+
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595 bps
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BB
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645 bps
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BB-
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720 bps
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B+
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795 bps
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B
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870 bps
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B-
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945 bps
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C+
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1,020 bps
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C
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1,095 bps
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C-
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1,170 bps
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(b) Accelerated Redemption
If the Credit Rating of the Issuer falls below “BBB-“by any rating agency (whether publicly or privately) or if the credit rating is withdrawn (unless substituted with a credit rating from a rating agency acceptable to the Majority Debenture Holders), each Debenture Holder shall have the right to ask for an Accelerated Redemption of the NCDs and such redemption will be made by the Issuer within 7 working days of the Debenture Holder making such a request.
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Coupon Type
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Fixed
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Floating
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ISIN
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INE614G07048
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INE614G07063
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Detail Name
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RPL-12.18%-28-3-25-PVT
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RPL-14.32%-28-3-25-PVT
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Scrip ID
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1218RPL25
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1432RPL25
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Abbrv Name
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1218RPL25
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1432RPL25
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Rupal Khandelwal
Manager
November 26, 2018 |