Mahindra and Mahindra Financial Services Ltd (MMFSL), a non-banking financial company plans to raise debt capital of Rs.1,000 crore with a public issue of non-convertible debentures (NCDs) opening on May 25, 2016.
NCDs have been rated ‘IND AAA’ by India Ratings and Research and ‘CARE AAA’ by Credit Analysis and Research Ltd. The NCDs are proposed to be listed on BSE within 12 working days from the issue closure date.
These NCDs, bearing a fixed rate of interest, are being offered under nine 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 66 months, 84 months and 120 months, respectively, shall be 8.34%, 8.44% and 8.53% p.a., respectively payable quarterly. The coupon rate for Series IV, Series V and Series VI having tenure of 66 months, 84 months and 120 months, respectively, shall be 8.60%, 8.70% and 8.80% p.a. respectively payable annually. The effective yield for Series VII, Series VIII and Series IX having tenure of 66 months, 84 months and 120 months, respectively, shall be 8.60%, 8.70% and 8.80% p.a. respectively from the Deemed Date of Allotment.
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 66 months, 84 months and 120 months, respectively, shall be 8.44%, 8.53% and 8.72% p.a., respectively. The coupon rate for Series IV, Series V and Series VI having tenure of 66 months, 84 months and 120 months, respectively, shall be 8.70%, 8.80% and 9.00% p.a. respectively payable annually. The effective yield for Series VII, Series VIII and Series IX having tenure of 66 months, 84 months and 120 months, respectively, shall be 8.70%, 8.80% and 9.00% p.a. respectively from the Deemed Date of Allotment.
The funds raised through this Tranche 1 Issue will be used for onward lending, financing, refinancing the existing indebtedness of the Company, long-term and working capital and general corporate purposes.
ICICI Securities Limited, A. K. Capital Services Limited, Edelweiss Financial Services Limited, JM Financial Institutional Securities Limited, SBI Capital Markets Limited, Trust Investment Advisors Private Limited and Yes Securities (India) limited are the Lead Managers to the Issue. Axis Trustee Services Limited is the Debenture Trustee, while Karvy Computershare Private Limited is the Registrar to the Issue.
#MMFSL plans to raise Rs.1,000 crore via NCDs pic.twitter.com/B4KhiE8KZc— Press Release Watch (@PrReleaseWatch) May 25, 2016
NCDs have been rated ‘IND AAA’ by India Ratings and Research and ‘CARE AAA’ by Credit Analysis and Research Ltd. The NCDs are proposed to be listed on BSE within 12 working days from the issue closure date.
These NCDs, bearing a fixed rate of interest, are being offered under nine 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 66 months, 84 months and 120 months, respectively, shall be 8.34%, 8.44% and 8.53% p.a., respectively payable quarterly. The coupon rate for Series IV, Series V and Series VI having tenure of 66 months, 84 months and 120 months, respectively, shall be 8.60%, 8.70% and 8.80% p.a. respectively payable annually. The effective yield for Series VII, Series VIII and Series IX having tenure of 66 months, 84 months and 120 months, respectively, shall be 8.60%, 8.70% and 8.80% p.a. respectively from the Deemed Date of Allotment.
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 66 months, 84 months and 120 months, respectively, shall be 8.44%, 8.53% and 8.72% p.a., respectively. The coupon rate for Series IV, Series V and Series VI having tenure of 66 months, 84 months and 120 months, respectively, shall be 8.70%, 8.80% and 9.00% p.a. respectively payable annually. The effective yield for Series VII, Series VIII and Series IX having tenure of 66 months, 84 months and 120 months, respectively, shall be 8.70%, 8.80% and 9.00% p.a. respectively from the Deemed Date of Allotment.
The funds raised through this Tranche 1 Issue will be used for onward lending, financing, refinancing the existing indebtedness of the Company, long-term and working capital and general corporate purposes.
ICICI Securities Limited, A. K. Capital Services Limited, Edelweiss Financial Services Limited, JM Financial Institutional Securities Limited, SBI Capital Markets Limited, Trust Investment Advisors Private Limited and Yes Securities (India) limited are the Lead Managers to the Issue. Axis Trustee Services Limited is the Debenture Trustee, while Karvy Computershare Private Limited is the Registrar to the Issue.
