Anagram Fin Seeks Funds To Retire Debt

Anagram Finance Ltd is entering the markets for both short- and long-term funds which will be used to retire some of its high-cost debt and use the current slump in the interest rates to its advantage.

Says Satish Nadkarni, vice-chairman and managing director of Anagram Finance, We are using the funds raised by the issue to substitute some of the relatively high-cost funds with cheaper funds and should the Commercial Paper(CP) market be attractive , we would roll over the same.

To this effect the company has already started placing part of the Rs 10-crore worth CP and has announced intentions of utilising its entire high rated capacity of Rs 25 crore for the same instrument. The entire programme is expected to be completed in another fortnight.

 

Sources say that Anagram has placed Rs 50 crore worth of medium-term paper at a coupon of 16 per cent in an attempt to change the risk taking profile of the firm. The rates at which the company has raised these funds also point out the risk perception of non-banking finance companies (NBFCs) and is significantly higher than the rates at which the better-rated NBFCs placed their paper for similar duration.

The CP programme of Anagram was rated the highest at P1+ by Crisil up to a limit of Rs 25 crore in the first week of May.