Cholamandalam Investment to raise funds via public issue

Proceeds from the issue will be used for onward lending, financing, and repayment of interest and principal of existing borrowings of the company, along with general corporate purposes

India's Cholamandalam Investment and Finance Company plans to raise at least ₹5 billion ($60.84 million) through the public issue of non-convertible debentures, according to a product note.

The non-banking finance company's public issue will open for subscription on Tuesday and will close on May 9.

The issue also has a greenshoe option to retain an additional ₹5 billion.

The company is offering bonds maturing in 22 months, 37 months, and 60 months at an annual coupon of 8.25%, 8.30% and 8.40% each.

A.K. Capital Services is the lead manager for the bond issue which is rated AA+ by ICRA and India Ratings.

Proceeds from the issue will be used for onward lending, financing, and repayment of interest and principal of existing borrowings of the company, along with general corporate purposes, it said in the product note.