Cholamandalam MS General Insurance raises Rs 100 cr via bonds

Cholamandalam MS General Insurance Company has raised Rs 100 crore by floating bonds on a private placement basis.
The company issued 1,000 unsecured non-convertible debentures (NCDs) of Rs 10 lakh face value each aggregating to Rs 100 crore.
The coupon rate is 8.75 per cent per annum at a maturity of 10 years and call option after 5 years, the company said in a release.
"The funds raised through this issue would be used to fuel and facilitate business growth by further strengthening the company's solvency.
"During fiscal 2017-18, Chola MS is poised to grow its Gross Written Premium (GWP) to Rs 4,500 crore, a growth of 40 per cent over the last fiscal," the company's MD and CEO S S Gopalarathnam said.

The NCDs have been assigned a credit rating of AA+ (outlook: stable) by rating agencies Crisil and Icra.
Chola MS General Insurance Company is a joint venture between Murugappa Group of Chennai and Mitsui Sumitomo Insurance Company Limited, Japan.