Kosamattam Finance to raise Rs 400 cr through bonds

Kosamattam Finance will issue secured redeemable non-convertible debentures (NCDs), aggregating to Rs 200 crore, with a green-shoe option to retain oversubscription up to Rs 200 crore, thus aggregating to a total of Rs 400 crore.

The non-banking financial company said it is planning to raise up to Rs 400 crore through issuance of NCDs of various maturity. The NCDs issue opened on 14 March 2022, and it will close on 8 April 2022.

The company will issue NCDs aggregating to Rs 200 crore, with a green-shoe option to retain oversubscription up to Rs 200 crore. The bonds are available in tenors of 18 months, 36 months (Series 2 / Series 3), 42 months, 48 months, 54 months, 60 months and 88 months.

The frequency of interest payment for 36 months (Series 2), 42 months, 48 months and 60 months is available on a monthly basis, while for other tenors it is available on at maturity basis. The bonds offer the highest effective yield of 10.47% per annum for the tenor of 60 months.

The NCDs proposed to be issued under this issue have been rated "IND BBB+/Stable by Indian Ratings & Research for an amount of Rs 400 crore. Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.

The funds raised will be used for the purpose of onward lending, for repayment of interest and principal of existing debts of the company, and general corporate purposes.

The NCDs are proposed to be listed on the BSE. The bonds would be issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories.

Kosamattam Finance is a Kerala Based NBFC engaged in the gold loan finance business. It lends money against the pledge of household Jewellery in the state of Kerala, Tamilnadu, Karnataka, Andhra Pradesh, Delhi and in the Union Territory of Puducherry. The company also offers fee-based ancillary services which include money transfer services, foreign currency exchange and air ticketing services.

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