Mahindra Finance plans to raise up to Rs 2,000 cr via NCDs

Non-banking finance firm Mahindra & Mahindra Financial Services ((Mahindra Finance) today said it plans to raise up to Rs 2,000 crore through issuance of bonds of various maturities.
The base size of the issue is of Rs 250 crore with an option to retain over subscription up to Rs 1,750 crore.
"The funds raised through the issue will be used for onward lending, financing, refinancing the existing indebtedness of the company, long-term and working capital and general corporate purposes," the company's vice-chairman and managing director, Ramesh Iyer, told reporters here.
The bonds being offered have maturity periods of 7 years, 10 years and 15 years.

For category I (QIB ) and category II (corporate) holders, the coupon rate for 7, 10, 15 years is 7.75 per cent, 7.90 per cent and 7.95 per cent, respectively, payable annually, Mahindra Finance said.
For category III (HNIs) and category IV (retail individual investor), the coupon rate for 7, 10, 15 years is 7.85 per cent, 8 per cent and 8.05 per cent, respectively, payable annually.

For the 15-year bond, the company may exercises call option at the end of 10th year, it said.
The non-convertible debentures (NCDs) open for subscription on July 10 and close on July 28.

Lead managers to the issue are Edelweiss Financial Services, Axis Bank, A K Capital, Trust Investment Advisors and Yes Securities.