Srei Equipment Fin to raise R500 crore via public issue of NCDs

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Mumbai | Published: April 9, 2015 2:53:28 AM

Srei Equipment Finance (SEFL) is planning to raise up to R500 crore through a public issue of secured redeemable non-convertible debentures (NCDs)...

Srei Equipment Finance (SEFL) is planning to raise up to R500 crore through a public issue of secured redeemable non-convertible debentures (NCDs), the company said in a press release.

“The NCD offering has received CARE AA rating by CARE and BWR AA (stable outlook) by BRICKWORK,” the company said in the release, adding Srei Capital Markets and Edelweiss Financial Services are the lead managers for the issue.

The NCDs with tenure of 36 months and 39 months, with an annual coupon payout option will have coupon rate of 10.20% per annum for institutional, non-institutional, and individual investors, the release said. For NCDs with tenure of five years and seven years, the coupon rate is 10.25%, it added.

SEFL is jointly promoted by Srei Infrastructure Finance and BNP Paribas Lease Group. “This is the first time the company is coming up with an NCD issue. NCDs offer attractive returns to retail investors compared with similar investment products. The amount thus raised would be used to fund our growth plans for infrastructure equipment financing,” said Srei Equipment Finance CEO DK Vyas.

As per latest Sebi data, public issue of NCDs in the FY15 reached R9,410.26 crore which is 78% lower than the FY14 figure. Market experts attributed this fall to the absence of tax-free bonds in FY15.

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