Mahindra Vehicle to raise Rs 800 cr via bonds: Sources

India’s Mahindra Vehicle Manufacturers, a unit of Mahindra & Mahindra, India's largest utility vehicles and tractor maker, is planning to raise Rs 800 crore through bonds, two sources said on Monday.

The firm will issue five-year bonds with an annual staggered redemption from the third year, the sources said.

The issue will pay a coupon of eight per cent and a premium on redemption with an effective yield of 10.20 per cent, they said. YES Bank and HDFC Bank are arrangers of the issue, which is rated AA by ICRA.