Srei Infra proposes NCDs to offer coupon up to 9.50 pct annually

India's largest private sector holistic infrastructure institutions Srei Infrastructure Finance Ltd. has announced proposing a public issue of secured redeemable non-convertible debentures (NCDs) of face value Rs. 1,000 each amounting up to Rs. 200 crore (base issue size) with an option to retain oversubscription up to the residual shelf limit of Rs. 706.63 crore.

The proposed issues open on January 30, 2017 and closes on February 23, 2017.

The NCDs have a credit rating of BWR AA+ (BWR Double A Plus) (Outlook: Stable) by BRICKWORK. The highest coupon is 9.50 percent per annum for investors of all categories for tenor of five years. For all categories of investors for tenor of three years the coupon is 9.25 percent per annum and for tenor of 400 days the coupon is 8.50 percent per annum.

An additional coupon of 0.25 percent will be offered to individual category investors who are existing shareholders of Srei, NCDs/bondholders of both Srei and Srei Equipment Finance Limited ("SEFL") and senior citizens.

Additional coupon is not applicable for series of 400 days tenor.

"NCDs are gaining prominence in the investment portfolio of retail investors. With increasing demand, public issue of NCDs are helping to make the bond market more vibrant. In the current falling interest rate scenario, Srei NCDs are a better investment option. This also helps in broadening the investor base in the bond market and helps in diversifying our funding source," said Senior VP and Head Resource Mobilization (Retail Liabilities) Srei, Sanjeev Kumar.

"With a legacy of more than 25 years, Srei has been shaping the country's infrastructure landscape. We not only believe in living up to the trust and interest of our stakeholders and investors, but are also committed towards deepening of the corporate bond market," he added.

The NCDs are proposed to be listed on the NSE and BSE.

The NCDs will be issued in physical as well as dematerialized form to individual investors only and in dematerialized form to other categories of investors.