Kotak To Raise Rs 50 Cr Through Ncds

Kotak Mahindra Finance Ltd (KMFL) would be raising Rs 50 crore from the private placement market by an issue of non-convertible debentures (NCDs).

This issue would be opening on May 9 and closing on May 15 with the deemed date of allotment on May 22.

The non banking finance company has obtained an `Ind AAA' rating by DCR India which indicates highest credit quality with negligible risk factors. SBI Capital Markets Ltd has been appointed as the sole book running lead arranger for this issue.

The money is going to be raise by a book building process with coupon rates in the range of 11.25-11.60 per cent payable annually with early paying facility at cut off coupon and 11.25 per cent. The tenor of the NCDs have been set at 3 years without any put or call option.

 

The company proposes to list the debentures on the wholesale debt market segment of the National Stock Exchange (NSE). Exclusive charge on certain assets of the company have been maintained. Security will be created in favour of trustees with minimum asset coverage of 1.25 times.

The non-banking finance company has chalked out its plans for entering the insurance sector and initially would be foraying into life insurance entirely on its own.