Lloyds Metals and Energy Limited has announced the approval of a fundraising initiative through the issuance of senior, secured, floating rate bonds. The Committee of the Board of Directors greenlit the issuance of up to USD 130 Million. These USD-denominated notes will be issued under Regulation S of the U.S. Securities Act of 1933. The company anticipates raising these funds within the next three years, with a maturity date set for October 29, 2029.
Board Approves Significant Debt Issuance
Lloyds Metals and Energy Limited (LMEL) has taken a significant step towards bolstering its financial resources by approving the issuance of senior, secured, floating rate bonds. The decision was made by the Committee of the Board of Directors during a meeting held on October 28, 2026. This strategic move aims to raise capital through USD-denominated debt securities, marking a key development in the company’s financing strategy.
Key Details of the Bond Issuance
The approved issuance is for senior secured notes with an aggregate principal amount of up to USD 130 Million (United States Dollar One Hundred and Thirty Million Only). These notes will be issued under Regulation S of the U.S. Securities Act of 1933, subject to the receipt of all applicable regulatory and statutory approvals. The tenure of the instrument is set at 3 Years, with the maturity date scheduled for October 29, 2029. The coupon/interest offered is tied to SOFR plus 450 basis points, with quarterly payments.
Security and Collateral
To secure the issuance, the company will provide specific collateral. This includes a first-ranking share pledge over 49% of the shares in Virtus Lloyds, shared on a pari passu basis. Additionally, there will be a first-ranking assignment over the rights and proceeds under the LGRF loan documents. A second-ranking pari passu charge by way of hypothecation over the movable fixed assets of the BHQ Plant will also be created. These securities are shared with other secured indebtedness.
Unlisted Securities
It is important to note that these senior secured notes will be unlisted. The meeting that approved these terms commenced at 05:30 P.M. (IST) and concluded at 05:45 P.M. (IST) on October 28, 2026. Further details are available on the company’s website at www.lloyds.in.
Source: BSE
