Aditya Birla Finance aims to raise Rs 2K cr via non-convertible debentures

Aditya Birla Finance Ltd announced on Monday that it aims to raise funds of up to Rs 2,000 crore through a public offering of non-convertible debentures (NCDs) starting from 27 September. The issue is scheduled to close on 12 October.

The NCDs are divided into three maturity options of three years, five years, and 10 years. The base issue size is set at Rs 1,000 crore, and there is a green shoe option that allows for an additional Rs 1,000 crore, bringing the total fundraising to Rs 2,000 crore.

The effective yield offered to NCD holders varies based on different categories and ranges from 7.99 per cent to 8.09 per cent per annum. Coupon rates on these bonds range from 8.00 to 8.10 per cent per annum.

The company plans to allocate a minimum of 75 per cent of the bond proceeds to purposes such as further lending, financing, and settling interest and principal payments on its existing borrowings. Additionally, it will use a maximum of 25 per cent of the net proceeds for general corporate needs.

Meanwhile, REC raised Rs 1,050 crore through its perpetual bond at a coupon of 8.03 per cent on Monday. Godrej Industries, rated AA by CRISIL and ICRA, raised Rs 400 crore at a coupon of 8.29 per cent maturing on 26 February 2027.

After JP Morgan announced the inclusion of government bonds in its emerging market (EM) bond index, a host of banks and other financial institutions plan to raise Rs 18,000 crore by issuing non-convertible debentures and bonds on Monday and Tuesday.