Mahindra & Mahindra Financial Services Limited Announces Public Issue of Unsecured Subordinated Redeemable Non-Convertible Debentures (NCDs)

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  • NCDs of face value of Rs.1,000 each for an amount of Rs. 25,000 lakhs (“Base Issue Size”)
  • Along with an option to retain oversubscription up to Rs. 1,75,000 lakhs aggregating up to Rs. 2,00,000 lakhs (Rs.2,000 Crore) (“Tranche 1 Issue”)
  • Issue opens on July 10, 2017, and closes on July 28, 2017**

Mumbai, July 05, 2017: Mahindra & Mahindra Financial Services Limited (“Company” or “Mahindra Finance”), one of the leading non-banking finance companies with customers primarily in the rural and semi-urban markets of India, plans to raise NCDs via public issue which is opening on July 10, 2017.

The NCDs proposed to be issued under this Tranche 1 Issue have been rated ‘IND AAA’/ Outlook Stable’ for an amount of Rs. 2,00,000 lakhs, by India Ratings & Research Private Limited (“India Rating”) and ‘BWR AAA, Outlook: Stable’ for an amount of Rs. 2,00,000 lakhs, by Brickwork Ratings India Private Limited (“BWR”). The rating of NCDs by India Ratings and BWR indicate that instruments with this rating are considered to have highest degree of safety regarding timely servicing of financial obligations and carry lowest credit risk. The NCDs offered through this Tranche 1 Prospectus are proposed to be listed on the BSE Limited (“BSE”).

These NCDs, bearing a fixed rate of interest, are being offered under three different Series. For Category I (QIB Portion) and Category II (Corporate Portion) holders, the coupon rate for Series I, Series II and Series III having tenure of 7 years, 10 years, 15 years respectively, shall be 7.75%, 7.90% and 7.95% p.a., respectively, payable annually.

While for Category III (HNI Portion) and Category IV (Retail Individual Investor Portion) holders, the coupon rate for Series I, Series II and Series III having tenure of 7 years, 10 years, 15 years respectively, shall be 7.85%, 8.00% and 8.05% p.a., respectively, payable annually.

Subject to compliance with applicable laws, in case of Series III NCDs, call option may be exercised by the Company at the end of the 10thyear from the Deemed Date of Allotment. In the event of call option being exercised for Series III NCDs, the Redemption Date for Series III NCDs shall be 10 years from Deemed Date of Allotment or such date for exercising the call option as intimated by the Company.

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