BUSINESS

CIFCO's Rs. 100 cr. debenture issue

CHENNAI MAY 22. Cholamandalam Investment and Finance Company, a Murugappa Group outfit, has raised Rs. 100 crores (including the greenshoe option) from the marketplace through floatation of three-year debentures.

The debentures, rated MAAA by ICRA, were offered through the book-building route under a twin option — fixed and floating rates. For the fixed rate option, the coupon ranges between 6.35 per cent and 6.60 per cent. For the floating rate option, the book building spread is 115-140 basis points over the one-year Government securities. The interest rate will be reset every year. M. Anandan, Managing Director of the company, said Cholamandalam looked at a revised target of raising Rs. 60 crores from the debt market through debentures. The issue, however, received subscription in excess of Rs. 115 crores from institutional investors.

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