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United News of India
12 hours ago
- Business
- United News of India
India, Central American Integration System hold virtual dialogue, identify areas of cooperation
New Delhi, June 19 (UNI) India and the Central American Integration System (SICA) held a Virtual Dialogue on June 18, during which they identified areas of cooperation including Food and Nutritional security, Health, Connectivity, Agriculture and Digital Transformation. The SICA representatives thanked India for its support in times of need such as the COVID Pandemic and other natural disasters affecting the region. The Indian side was led by Additional Secretary, Rajesh Vaishnaw. SICA was represented by the Vice Minister of Multilateral Affairs of the Republic of Costa Rica, Alejandro Solano, Director of International Cooperation of the SICA Secretariat, Carmen Marroquin, and Senior Officials and Representatives of the SICA Member countries. The current Pro-Tempore Presidency of SICA lies with Costa Rica and will be handed over to Panama later this year. Additional Secretary, in his intervention, underlined that the India SICA relationship is built on a strong foundation of mutual respect, shared values of democracy and sustainable development, and strong commitment to South-South cooperation. India has actively supported a number of initiatives in this region through its development cooperation programmes, including the ITEC capacity-building platform, Quick Impact Projects (QIPs), and the dedicated SME grant programme. Additional Secretary highlighted India's success in Digital Transformation, Affordable Healthcare and Medicines, Disaster Resilience and Renewable Energy stating that India is willing to cooperate further in these areas with the SICA member countries for shared prosperity and sustainable development, a statement said. The representatives from SICA Secretariat and the SICA Member countries appreciated India's proactive role in fostering global South-South cooperation. They mentioned that the India SICA cooperation will deepen further through sustained political dialogue and regional cooperation initiatives. Main areas of cooperation were identified as Food and Nutritional security, Health, Connectivity, Agriculture, Digital Transformation, Energy, Trade and Investment. The representatives from SICA thanked India for its support in times of need such as the COVID Pandemic and other natural disasters affecting the region. The Central American Integration System (SICA) is the institutional framework of Regional Integration in Central America, created by the States of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. Subsequently, Belize joined afterwards as a full member; in 2013, The Dominican Republic did likewise. SICA's General Secretariat headquarters are located in the Republic of El Salvador. UNI RN
Economic Times
14-05-2025
- Business
- Economic Times
Vedanta plans Rs 3,500-crore bond sale to refinance debt
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Vedanta plans to raise around ₹3,500 crore through unsecured non-convertible debentures (NCDs) to refinance upcoming debt maturities, people familiar with the matter told bonds, expected to be issued in the last week of May, will carry a tenor of 2.5 to 3 years and are likely to be priced in the 9-9.5% range, the people said. Barclays and Citibank have been mandated to manage the raised ₹2,600 crore in February at a coupon of 9.75%. The current offering could be used to refinance liabilities at the standalone company level."Vedanta continues to evaluate various fund-raising options to strengthen its balance sheet and optimise its cost of funds," a company spokesperson said. "There has been strong investor interest, translating into a steady decline in our overall interest cost." The company declined to comment directly on market and Citibank spokespersons declined to of March 31, 2025, Vedanta's net debt stood at ₹53,251 crore. Total consolidated debt at group is $8.64 billion, with net debt at $6.23 billion. The operating company has ₹11,400 crore of debt maturing in FY26-27, while the holding company, VRL, faces $920 million in debt repayments in FY26 and another $675 million in has deleveraged by $4 billion over the past three years, reducing its average bond coupon by 250 basis points and extending maturities to FY33-34. It has committed to trimming another $3 billion in debt over the next three years, per its latest investor is also working toward a demerger, targeting completion by September 2025. Vedanta's original demerger scheme, unveiled in September 2023, proposed breaking up the conglomerate into six separate entities representing the different revenue streams to create independent, sector-focused entities to improve strategic clarity and unlock value. This NCD will likely be under the residual December 2024, Crisil upgraded Vedanta's NCD rating to AA from AA-, citing the promoter's consistent debt-reduction efforts, including stake sales and capital market transactions like QIPs and OFS.
Time of India
14-05-2025
- Business
- Time of India
Vedanta plans Rs 3,500-crore bond sale to refinance debt
Mumbai: Vedanta plans to raise around ₹3,500 crore through unsecured non-convertible debentures (NCDs) to refinance upcoming debt maturities, people familiar with the matter told ET. The bonds, expected to be issued in the last week of May, will carry a tenor of 2.5 to 3 years and are likely to be priced in the 9-9.5% range, the people said. Barclays and Citibank have been mandated to manage the issuance. Vedanta raised ₹2,600 crore in February at a coupon of 9.75%. The current offering could be used to refinance liabilities at the standalone company level. Bonds Corner Powered By Vedanta plans Rs 3,500-crore bond sale to refinance debt The bonds, expected to be issued in the last week of May, will carry a tenor of 2.5 to 3 years and are likely to be priced in the 9-9.5% range, the people said. Barclays and Citibank have been mandated to manage the issuance. Sebi easing norms for foreign investors buying only government bonds India bond yields seen lower as India-Pakistan ceasefire calms jitters No new tax-free bonds issued since 2016. Here's how to tap existing ones for tax-free income Foreign banks dump $3 billion worth g-secs amid India-Pak tensions Browse all Bonds News with "Vedanta continues to evaluate various fund-raising options to strengthen its balance sheet and optimise its cost of funds," a company spokesperson said. "There has been strong investor interest, translating into a steady decline in our overall interest cost." The company declined to comment directly on market speculation. Barclays and Citibank spokespersons declined to comment. Live Events As of March 31, 2025, Vedanta's net debt stood at ₹53,251 crore. Total consolidated debt at group is $8.64 billion, with net debt at $6.23 billion. The operating company has ₹11,400 crore of debt maturing in FY26-27, while the holding company, VRL, faces $920 million in debt repayments in FY26 and another $675 million in FY27. VRL has deleveraged by $4 billion over the past three years, reducing its average bond coupon by 250 basis points and extending maturities to FY33-34. It has committed to trimming another $3 billion in debt over the next three years, per its latest investor presentation. Vedanta is also working toward a demerger, targeting completion by September 2025. Vedanta's original demerger scheme, unveiled in September 2023, proposed breaking up the conglomerate into six separate entities representing the different revenue streams to create independent, sector-focused entities to improve strategic clarity and unlock value. This NCD will likely be under the residual Vedanta. In December 2024, Crisil upgraded Vedanta's NCD rating to AA from AA-, citing the promoter's consistent debt-reduction efforts, including stake sales and capital market transactions like QIPs and OFS.
Mint
07-05-2025
- Business
- Mint
Sebi seeks to streamline QIP disclosures but experts flag legal hurdles
Securities and Exchange Board of India's (Sebi) recent proposal to revamp regulations governing qualified institutions placement (QIP)—a key route for listed companies to raise capital—could accelerate the process but may also introduce new complexities, experts said. The consultation paper, released on 2 May, suggests streamlining the placement document by focusing on relevant information. This includes updates to disclosures about risk factors, the use of proceeds, capitalization statements, and financial details. The objective, Sebi said, is to eliminate redundant information and enhance the clarity and relevance of disclosures for qualified institutional buyers (QIBs), who are considered knowledgeable investors. Sebi has invited public feedback on these proposals by 23 May. QIBs typically include mutual funds, insurance companies, pension funds, foreign institutional investors, and other large financial institutions. Experts said the revised disclosure requirements are sufficient for these QIBs, but warn of challenges ahead. Experts foresee potential complications, particularly concerning the proposed "materiality" thresholds for disclosing legal proceedings and a possible increase in the responsibility for thorough due diligence. Materiality threshold refers to the level at which a legal matter becomes important enough to warrant disclosure. Sebi's assessment indicates that existing detailed disclosure norms for listed companies often overlap with QIP requirements, causing unnecessary delays and procedural inefficiencies. Legal experts pointed out that while the proposals aim to align QIP disclosures with rights issues, issuers will still need to comply with additional requirements under the Companies Act. This creates a dual regulatory framework that affects due diligence and document preparation, they said. Abhiroop Lahiri, partner at Cyril Amarchand Mangaldas said that while the discussion paper proposes some welcome changes, companies should keep in mind that QIP offer documents are still 'private placement offer letters' and therefore must continue to comply with the disclosure requirements (Form PAS 4) under the Companies Act, 2013. 'Form PAS 4 prescribes numerous additional disclosures that are not covered by Sebi's regulations or the discussion paper. For instance, it requires a detailed breakup of the issuer's share capital history since incorporation—something the discussion paper suggests is irrelevant for QIP investors," said Lahiri. Until Sebi's regulations and the Companies Act are fully aligned, QIPs will necessitate additional information beyond the discussion paper's proposals, impacting the due diligence and preparatory process, he added. About the difference in the discussion paper between QIPs and rights issues, Lahiri said, 'QIPs are marketed to new investors, not existing shareholders. Therefore, issuers may include extra disclosures in QIP offer documents, ensuring new investors have all the necessary information before committing." Also Read: Sebi eases ESG rating rules. But experts warn of short-term risk Other legal experts emphasized the necessity of amending the current Sebi (Issue of Capital and Disclosure Requirements) regulations to avoid conflicts with the proposed changes. Pranav Bhaskar, partner and head of corporate practice at SKV Law Offices explained that the ICDR (Issue of Capital and Disclosure Requirements) regulations currently mandate detailed disclosures in the QIP placement document, including financials, risk factors, and corporate details. He said that if Sebi concluded these disclosures largely duplicate information already disseminated by listed companies under the Listing Obligations and Disclosure Requirements (LODR) Regulations, reducing redundant content would align with the objectives of both ICDR and LODR. 'Sebi's rationale, that LODR filings cover much of the same ground, is consistent with the continuing disclosure regime, but the ICDR itself would have to be revised before the new placement document format becomes legally binding," Bhaskar stated. Experts also raised concerns regarding potential legal challenges, particularly concerning the new materiality thresholds for disclosing legal proceedings. Currently, ICDR requires the disclosure of 'material" lawsuits without specific numeric limits. The draft proposal suggests listing only cases exceeding 2% of turnover or net worth, or 5% of average profit/loss after tax. 'What if a significant case falls just below the threshold? Will different companies' materiality policies (permitted as an alternative) lead to inconsistent disclosures? Ambiguity may arise in aligning this with LODR's concept of material events (which trigger mandatory exchange filings)," said Bhaskar. Also Read: Sebi defers rollout of common contract note for FPIs to July Some financial experts welcomed Sebi's move, anticipating increased efficiency and reduced costs. Jyoti Prakash Gadia, managing director at Sebi-registered merchant banker Resurgent India, stated that the revised process would entail lower costs and reduced time. Currently, the time taken for the QIP documentation is typically 3-4 weeks, which could vary depending on various factors such as the company's preparedness, the complexity of the issue, and the responsiveness of involved parties (merchant bankers, legal counsel, etc). 'The revised set of information now proposed to be prescribed for being made available to QIBs is considered to be adequate, taking into account the fact that the QIPs are professionally run entities having adequate capabilities to assess the strengths and weaknesses of each offer of private placement of equity shares," he said. Others said this reflected Sebi's broader shift toward deregulation and enhancing the ease of doing business in capital markets. However, Narinder Wadhwa, managing director and chief executive officer of stockbroker and merchant banker SKI Capital Services Ltd, cautioned against aligning QIP disclosures too closely with those of IPOs or rights issues. 'IPO disclosures are designed for a broader investor base, including retail participants, and applying the same standards to QIPs could risk overburdening issuers with unnecessary requirements. If not carefully calibrated, it might reintroduce the very complexity and costs that the rationalization aims to eliminate," he said.
Economic Times
02-05-2025
- Business
- Economic Times
Sebi mulls rationalising placement document for QIP
New Delhi, Markets regulator Sebi on Friday proposed to rationalise the content of the placement document of Qualified Institutions Placement (QIP) by prescribing only the relevant information regarding the issue. Presently, in QIPs the issuer is required to disclose the details in the placement document as prescribed under ICDR (Issue of Capital and Disclosure Requirements) norms. ADVERTISEMENT Such disclosures are detailed in nature and preparing a lengthy placement document is a time-consuming exercise that results in duplication of information, which is already available in the public domain. In its consultation paper, the regulator has revised the content of placement document. Explaining the rationale for the proposed revision, Sebi said that QIPs are issued to Qualified Institutional Buyers (QIBs) who are sophisticated investors and possess the expertise and resources to take an informed investment decision independently. "These investors are generally well-versed with the issuer's business operations, financials and industry positions and therefore may not require the same level of aggregation of detailed disclosures as may be necessary in a public offering to retail investor," it added. The regulator has proposed to provide a detailed breakdown of capital -- authorised, issued, and subscribed -- considering outstanding convertible securities. It suggested that paid-up capital should be shown before the issue, after the issue and after conversion (if applicable). ADVERTISEMENT With regards to financial information, Sebi has proposed to include summary extracts of audited consolidated financials -- last financial year along with comparative year. Besides, it suggested to add latest limited review statements not older than 6 months. To avoid duplication of data already filed with stock exchanges, the regulator has proposed for reference detailed audited reports instead of repeating them. ADVERTISEMENT On management discussion and analysis disclosure, the regulator has suggested to remove this section as it's not required in other capital raising modes like rights or preferential issues. For industry and business description, Sebi has suggested to keep it brief and in summary form as QIP investors are assumed to be informed and don't require extensive details. ADVERTISEMENT For board and senior management details, Sebi has suggested to align disclosures with IPO or rights issue formats to avoid ambiguity. To streamline the document for institutional investors, Sebi has suggested for summary inclusion instead of full repetition. It has proposed allowing inclusion of key summaries and cross-referencing instead of full replication of financials and legal texts. ADVERTISEMENT The markets regulator has proposed that legal proceedings disclosed in the placement document should be presented in a clear tabular format. Only material litigations should be included. To decide what is "material", Sebi suggested using financial thresholds. A case is considered material if its impact exceeds 2 per cent of the issuer's turnover or net worth, as per the latest financial statements, or 5 per cent of the average profit or loss after tax from the past three years. Alternatively, companies should use their own materiality policy, as long as it's disclosed in the document. Sebi has suggested no changes with regards to disclosing dividend history for the past three years, with organisational structure, shareholding pattern, taxation, auditor information and wilful defaulters/fraudulent borrowers. The Securities and Exchange Board of India (Sebi) has sought public comments on the proposals by May 23. Before this, rights issue process was reviewed by Sebi to rationalize the content of the letter of offer and with an objective to reduce the timelines for completion of rights issue. (You can now subscribe to our ETMarkets WhatsApp channel)
