Piramal Finance raises Rs 2.9K cr via bonds backed by mutual funds

Funds raised through three tranches will be used for onward lending, refinancing, debt repayment and short-term investments, says the Piramal Enterprises NBFC arm

Piramal Finance on Monday raised ₹2,950 crore through bonds issued in three tranches, with coupon rates ranging from 9.10 per cent to 9.25 per cent, sources said.

 

The non-banking financial company (NBFC) arm of Piramal Enterprises raised ₹500 crore through bonds maturing in 22 months at a coupon rate of 9.10 per cent per annum, payable annually. Additionally, it raised ₹2,050 crore via 24-month bonds at a 9.15 per cent annual coupon, and ₹400 crore through five-year bonds carrying a coupon of 9.25 per cent per annum, also payable annually.

 

The NBFC was in the market to raise up to ₹3,500 crore through a combination of base issue and greenshoe options, but ultimately retained ₹2,950 crore.

 

ICICI Prudential Mutual Fund anchored ₹300 crore of the total fundraise, while Kotak Mutual Fund, Larsen & Toubro Ltd, Nuvama Wealth Finance, and AK Capital Finance collectively anchored ₹165 crore. 

 

The lender will use the proceeds of the fundraise for onward lending activities, refinancing of existing debt, debt repayment and short-term investments.

 

Standard Chartered Bank, Nuvama Wealth Management and AK Capital Services were arrangers of the issue, while IDBI Trusteeship Services was the debenture trustee. The bonds have been rated “AA” (stable) by domestic credit rating agency CARE Ratings.

 

Piramal Finance is a wholly owned subsidiary of Piramal Enterprises and offers a range of financial products and services, including home loans, business loans, personal loans and loans against property. The NBFC is classified as NBFC – Middle Layer.