Non-banking financial company Capital First on Monday said it will raise up to Rs 1 billion by issuing bonds on a private placement basis.
"The debenture committee at its meeting held on Monday (July 9, 2018) has approved an issue of rated, secured, redeemable, non-convertible debentures of Rs 500 million plus greenshoe option of Rs 500 million on private placement basis," the company said in a regulatory filing.
The tenor of the instruments, bearing an interest rate of 9 per cent per annum and to be paid annually, is three years.
Capital First specialises in providing debt financing to MSMEs and consumers in the country.
Stock of Capital First closed 0.32 per cent up at Rs 515 on BSE.