Biocon Limited and Biocon Biologics Limited Set for Debt Reduction Following Bond Issuance

Strategic Move to Debt Reduction

Biocon Biologics Limited, a subsidiary of Biocon Limited, has recently refinanced $1.1 billion in debt through a combination of offshore bonds and term loans. This pivotal step will enable the company to concentrate on debt reduction strategies. A senior executive indicated that the refinancing was necessary to manage the financial obligations incurred from acquiring a comprehensive global biosimilars portfolio from Viatris Inc in 2022.

Details of the Bond Issuance

• The bond issuance raised $800 million due in 2029 at a coupon of 6.67%.
• Additionally, a syndicated debt facility has been committed to further support refinancing efforts.
• The overall demand for the bonds was considerable, with a total book size of $2.5 billion, indicating robust investor interest.

Future Considerations for Debt Management

The Chief Financial Officer of Biocon Biologics, Kedar Upadhye, remarked on the improved liquidity profile following refinancing, with net debt currently estimated at $1.3 billion. Following this step, various avenues including an Initial Public Offering (IPO) and other financing options are being considered to strategically manage and reduce debt.

Given the global balance of demand for the bond offerings, with 47% from the US and 27% from Europe and the Middle East, Biocon Biologics is poised to navigate future interest rate trends effectively.