ALSO READSREI Infrastructure Finance provides update on buyback of Long Term Infrastructure Bonds SREI Infrastructure Finance standalone net profit rises 43.29% in the March 2017 quarter SREI Infrastructure Finance consolidated net profit rises 205.31% in the March 2017 quarter Board of SREI Infrastructure Finance recommends final dividend SREI Infrastructure Finance to hold board meeting
Industry machinery financier Srei Equipment Finance Ltd plans to raise up to Rs 1,000 crore by floating bonds in a public issue that opens next week.
The company will issue unsecured, redeemable non- convertible debentures of face value of Rs 1,000 each amounting to Rs 500 crore with a green shoe option to retain over-subscription.
The issue will be open for subscription from July 17 and close on July 31 with an option to close early.
Srei Equipment will put the money raised as tier II capital which it will use for lending activity as well to repay a part of company's loans and meet general corporate purposes.
"NCDs have been gaining popularity in investment portfolio of retail investors. With annualised coupon of up to 9.55 per cent per annum, the NCDs offer returns for retail investors as compared to similar investment products.
"The proposed issue will also help expand our investor base and diversify our funding source," SEFL CEO Devendra Kumar Vyas said.
Rated at AA plus by Brickwork, the instruments carry high degree of safety with regard to timely servicing of financial obligations.
Edelweiss Financial Services Limited, Trust Financial Consultancy Services, A K Capital Services, SPA Capital Advisors and Srei Capital Markets are lead managers to the issue.
Srei Equipment Finance Limited (SEFL), a wholly-owned subsidiary of Srei Infrastructure Finance Limited (Srei) provides financing for construction and mining equipment.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)