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Srei opens bond issue to raise up to Rs 500 cr; fund will be utilised to meet on-lending, corporate needs

New Delhi: Srei Infrastructure Finance on Tuesday opened its bond issue to raise up to Rs 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 9 May, the company said in a release.

 Srei opens bond issue to raise up to Rs 500 cr; fund will be utilised to meet on-lending, corporate needs

Representational image. Reuters.

The issue is of a face value Rs 1,000 each amounting up to Rs 100 crore (base issue) with an option to retain oversubscription of up to Rs 400 crore, totalling up to Rs 500 crore (tranche 1 issue size) within the shelf limit of Rs 1,500 crore (tranche 1 issue), Srei said.

The highest coupon is 10.75 percent per annum for investors of all categories for tenure of five years.

Srei said it would offer an additional coupon of 0.25 percent to all category of existing bondholders of both Srei and Srei Equipment Finance and senior citizens.

The company intends to utilise up to 75 percent of the net proceeds from the issue for lending or repayment of loan, while up to 25 percent 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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Updated Date: Apr 09, 2019 17:06:49 IST

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