Report: GITI Tire Issue Oversubscribed

Giti Tire Pte Ltd’s $200 million bond issue has attracted about $500 million in orders, a source close to the deal told Reuters. The five-year bond issue, not callable for three years, is expected to be priced during London trading hours today. A yield guidance of around 12.5 per cent has reportedly been indicated. The company received requests for 30 one-on-one meetings with potential investors, the source said, a strong number given the size of the deal. S&P said the funds would be used to extend a $160 million loan to GITI’s parent company, for future investments and for working capital requirements.