Cholamandalam MS General Insurance Company Limited has raised ₹100 crore by privately placing non-convertible debentures (NCDs).
The company offered on private placement of 1,000 unsecured, subordinated, fully paid-up, listed, redeemable, non-convertible debentures. These have a face value of ₹10,00,000 each and are offered at par.
The coupon rate is 8.75%. The NCDs have a maturity period of 10 years with a call option after five years.
The NCDs have been assigned a credit rating AA+ (Outlook: Stable) by rating agencies CRISIL and ICRA.
The NCDs will be listed on National Stock Exchange. The funds thus raised would be used to facilitate business growth by further strengthening the company’s solvency, said S.S. Gopalarathnam, managing director and chief executive officer of Chola MS.
"We have augmented our capital base by issuing subordinated debt, post the recent measures announced by the Insurance Regulatory and Development Authority of India (IRDAI) allowing alternative forms of capital,’’ he said. During the fiscal 2017-18, Chola MS is hoping to grow its gross written premium (GWP) to ₹4,500 crore, a growth of 40% over the last fiscal.
