MakeMyTrip raises $200 mn through a zero per cent interest coupon bond

MakeMyTrip (MMT) on Friday said it raised $200 million through a zero per cent interest coupon bond.

The raise comes at a time when the travel industry is in the midst of difficult times. “This raise will bolster our cash reserves allowing us to meet the working capital requirements as business recovery gathers momentum and also pursue any investment opportunities in the growing Indian market,” said Group Chief Financial Officer Mohit Kabra.

The notes offering was upsized from the previously announced offering of $175 million in aggregate principal amount of the notes. MMT has granted the initial purchasers of the notes a 30-day option to buy up to an additional $30 million in aggregate principal amount of the notes. The sale of the notes to the initial purchasers is expected to settle on February 9, subject to customary closing conditions.

MMT intends to use the net proceeds for working capital and other general corporate purposes.

The company will use the notes offering as and when required, said Rajesh Magow, group chief executive of MakeMyTrip. “It is just to make our balance sheet stronger and have more cash reserves on our balance sheet… There is no real immediate deployment need that we have,” he said.

The notes will mature on February 15, 2028, unless earlier redeemed, repurchased or converted in accordance with their terms prior to such date.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor