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July 19, 2021

OYO raises TLB funding of $660m from global institutional investors

The maiden TLB capital raise was oversubscribed by almost 1.7 times.

Indian multinational hospitality chain Oyo has raised a Term Loan B (TLB) funding, worth $660m, from global institutional investors.

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The funding will be used to repay its past debts and enhance its financial stability. It will also invest in product technology.

According to the firm, the offer was oversubscribed by 1.7 times along with commitments of close to $1bn from leading institutional investors.

The names of the investors have not been disclosed by the company. The Economic Times reported that Fidelity Investments, Varde Partners, and Citadel Capital management took part in the funding round.

The company raised the size of the offering by 10% to $660m. In addition, the interest margin rate was also lowered by 25 basis points to 825 basis points.

OYO chief financial officer Abhishek Gupta said: “We are delighted by the response to OYO’s maiden TLB capital raise that was oversubscribed by leading global institutional investors.

“We are thankful for the trust that they have placed in OYO’s mission of creating value for owners and operators of hotels and homes across the globe.

“This is a testament to the strength and success of OYO’s products at scale, our strong fundamentals and high-value potential. OYO is well capitalised and on the path of achieving profitability.

“Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the Covid-19 pandemic.”

With this latest funding, Oyo is the first Indian firm to raise capital via the TBL route.

It is also the first start-up in India to be independently assessed by credit rating agencies, Moody’s and Fitch.

Lead arrangers for the financing were JP Morgan, Deutsche Bank, and Mizuho Securities.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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