Cholamandalam MS General Insurance Company is a joint venture between diversified business conglomerate Murugappa Group and Japan-based Mitsui Sumitomo Insurance Company Ltd.
"Cholamandalam MS General Insurance has announced successful private placements of 1,000 unsecured, subordinated, fully paid-up capital, non-convertible debentures (NCDs) having face value of Rs 10,00,000 each, at par, aggregating to Rs 100 crore", the city-based company said in a statement.
"The coupon rate is 8.75 per cent per annum and a maturity period of 10 years with a call option after five years," it said.
"The funds raised through this issue would be used to fuel and facilitate business growth by further strengthening the company's solvency," he said.
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On the outlook for 2017-18, he said, "Chola MS is poised to grow its Gross Written Premium to Rs 4,500 crore, a growth of 40 per cent over last fiscal."
The NCDs would be listed in the National Stock Exchange Ltd and are in accordance with the provisions of IRDAI, it added.
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