13 July, 2016
Allen & Overy said today that Glenmark Pharmaceuticals Limited’s USD170 million convertible bond with a rare “resettable onward starting equity-linked” feature, points to the revival of the Indian convertible bond market following reduced volumes in the last two years. Glenmark is a research-oriented, integrated pharmaceutical company incorporated in India, with a global footprint. Allen & Overy advised J.P. Morgan as the sole manager on this transaction.
The bond, unlike conventional convertible bonds, has a conversion price which will only be determined approximately 18 months after settlement (versus on pricing as is traditionally the case). This feature allows the issuer to capture the potential upside to its share price in the run up to determining the conversion price. The bond also built in an investor put which was structured to satisfy Indian regulatory requirements.
Commenting, Allen & Overy U.S. securities partner Amit Singh said: “This transaction underscores the strength of our capital markets practice in India and the region where we are at the forefront of advising on some the most interesting and complex capital markets products. We look forward to advising on many more of such equity-linked transactions in the region.”
Amit led the Allen & Overy team from Hong Kong with support from lawyers Michele Discepola, David Cameron, Wen-Chao Gao and Tiffany Tse.
This issuance follows other recent high profile debt issuances from India that the Allen & Overy team has advised on, including the recent Indian high yield bond issuance by Samvardhana Motherson and the Climate Bond Initiative certified London listed Rule 144A/Regulation S green bond by Axis Bank.
