Aditya Birla Finance to raise up to Rs 2K cr through maiden issue of NCDs

Aditya Birla Finance Limited (ABFL) on Monday announced that the company will raise up to Rs 2,000 crore through its maiden public issue of non-convertible debentures (NCDs). In a filing, the company said it will issue NCDs for an amount up to Rs 1,000 crore with an option to retain oversubscription up to Rs 1,000 crore for an aggregate amount of up to Rs 2,000 crore.

ABFL, a subsidiary of Aditya Birla Capital Limited, said it will use at least 75 per cent of the net proceeds of the issue towards onward lending, financing, and repayment of interest and principal of existing borrowings of the company and up to 25 per cent of the net proceeds towards general corporate purposes.

The allotment of NCDs will be on a first-come, first-serve basis. The NCDs will be issued with tenor options of three, five, or ten years offered with 'monthly', 'annual' or 'cumulative' interest payment frequency. ABFL also said that the coupon rates will range from 8 per cent per annum to 8.10 per cent per annum for annual options, with effective yields ranging from 7.99 per cent per annum to 8.09 per cent per annum across various series.

Trust Investment Advisors Private Limited, AK Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) will be the lead managers of the issue. The issue will open on September 27 and close on October 12, with an option of early closure.

ABFL said in a release that the NCDs are rated IND AAA Outlook Stable by India Ratings & Research Private Limited and ICRA AAA (Stable) by ICRA Limited.