NEW DELHI: Srei Infrastructure Finance Tuesday opened its bond issue to raise up to ₹500 crore for on-lending and meeting general corporate needs.
The first tranche of the company's non-convertible debentures (NCDs) is slated to close on May 9, the company said in a release.
The issue is of a face value ₹1,000 each amounting up to ₹100 crore (base issue) with an option to retain over subscription of up to ₹400 crore, totalling up to ₹500 crore (tranche 1 issue size) within the shelf limit of ₹1,500 crore (tranche 1 issue), Srei said.
The highest coupon is 10.75% per annum for investors of all categories for tenure of five years.
Srei said it would offer an additional coupon of 0.25% to all category of existing bondholders of both Srei and Srei Equipment Finance and senior citizens.
The company intends to utilise up to 75% of the net proceeds from the issue for lending or repayment of loan, while up to 25% would be for meeting general corporate purpose.
"In light of the recent rate cut of 25 basis points by the RBI (Reserve Bank of India), well-priced NCDs have become a preferred choice of retail investors. We are also committed towards deepening of the corporate bond market and we expect a good demand for our latest offering," said Rakesh Bhutoria, chief executive officer, Srei.
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