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ICICI Prudential Life Insurance Raises Rs12.00 Billion of Debt Capital Through Non-Convertible Debentures

In Business
November 09, 2020

ICICI Prudential Life Insurance has raised 12.00 billion (Rs 1,200 crore) of debt capital through a private placement of non-convertible debentures (NCDs). The NCDs carry ratings of CRISIL AAA/Stable and [ICRA] AAA(Stable), and hence considered to have the highest degree of safety regarding timely servicing of financial obligations.

The current solvency ratio of 205% (on September 30, 2020) is well in excess of the regulatory requirement of 150%. This debt capital raise, which is the largest by any insurance company in India, will further increase the resilience and financial strength of the Company and the proceeds shall be utilised in the normal course of the Company’s business activities.

The NCDs are proposed to be listed on the Wholesale Debt Market of the National Stock Exchange of India Limited (NSE). The NCDs are in the nature of subordinated debt, with a coupon of 6.85% per annum and a tenor of 10 years with a call option at the end of 5 years, and annually thereafter.

N S Kannan, MD and CEO, ICICI Prudential Life Insurance said, “We are delighted with the market response to our maiden subordinated debt capital raise through NCDs. The issue was tightly priced at a coupon rate of 6.85% per annum. The level of interest for the issue highlights the confidence investors have in our Company. Over the years, we have demonstrated a consistent track record of profitable growth, coupled with zero non-performing assets in our investment portfolio since inception and across market cycles. While our solvency ratio is already at 205% and well above the regulatory requirement of 150%, we have proactively used the opportunity offered by benign debt market conditions for the benefit of all the stakeholders of the Company. This capital will be used to support our future business growth,
including that of the protection segment.“