Mumbai, Nov 11: The Indian Petrochemical Corporation (IPCL) is considering a Yankee bond float: a combination of 10-year $100 million and a 20-year $200 million offerings. IPCL has already initiated talks for the $300 million Yankee bond float with leading international investment bankers.

Among the investments bankers who have made a pitch for the deal are ANZ Investment Bank, BankAm, ABN Amro Bank, Union Bank of Switzerland and Goldman Sachs. Sources said that presentations have recently been made by a few investment bankers in Baroda. They added that the mandate for lead-managing of Indian Petrochemical's Yankee bond offerings may, in all likelyhood, go to Goldman Sachs. Investment bankers, however, feel that while the mandate for lead-managing the Yankee bond issue may be settled soon, IPCL may prefer to hold on from hitting the international market with its offering in the immediate future.

"Spreads on Indian papers have widened. It is not the right time to hit the market," said a banker involved with the presentations.Given this, investment bankers say that an alternative for IPCL may be to go in for a syndicated loan. On maturity, the loan could be refinanced all over again. The Yankee bond offering will mark the second attempt by IPCL to tap the international markets.

The public sector undertaking had earlier this year successfully gone in for a $175 million foreign currency convertible bond (FCCB) offering.

IPCL's FCCB offering was brought into the market by two leading investment bankers: BankAm and Goldman Sachs.BankAm helped IPCL with a credit enhancement by issuing a guarantee to back up the FCCB float in the international market.

The Houston-based bank's support enabled IPCL pierce the country's rating barrier. The superior rating that BankAm enjoyed in the international markets facilitated this. Goldman Sachs helped place the IPCL FCCB's in the market.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.