GOA:
India’s one of the leading construction and mining equipment financier, Srei Equipment Finance Limited (“SEFL”), is proposing a public issue of unsecured, subordinated, redeemable non-convertible debentures, eligible for inclusion as Tier II Capital, (“NCDs”) of face value Rs 1,000 each amounting up to Rs 500 crore (“Base Issue Size”) with an option to retain oversubscription up to additional Rs 500 crore.
The issue opens on July 17, 2017 and will close on July 31, 2017, with an option of early closure. The NCDs offer an annualised coupon of up to 9.55% per annum.
The NCDs have credit ratings of “BWR AA+” (BWR Double A Plus) (Outlook: Stable) by BRICKWORK and “SMERA AA+” (SMERA Double A Plus) (Outlook: Stable) by SMERA. Instruments with such ratings are considered to have a high degree of safety regarding timely servicing of financial obligations.
The issue is proposed to be listed on the BSE Limited (“BSE” or “Designated Stock Exchange”) and the National Stock Exchange of India Limited (“NSE” and together with “BSE” referred to as “Stock Exchanges”).
Commenting on the proposed NCD issue, Devendra Kumar Vyas, CEO, SEFL, said: “SEFL has successfully established itself as one of the market leader in financing construction and mining equipment in the country. Our key strength is our ability to offer holistic asset life cycle solutions to our customers as per their needs. This sets us apart as the preferred financier of the construction and mining equipment industry.”
“NCDs have been gaining popularity in the investment portfolio of retail investors. With annualised coupon of up to 9.55% per annum, SEFL NCDs offer returns for retail investors compared to similar investment products. The proposed issue will also help expand our investor base and diversify our funding source,” he added.
The object of the proposed issue is to raise funds for various lending activities, to repay a part of the company’s existing loans and general corporate purpose. The lead managers to the issue are Edelweiss Financial Services Limited, Trust Financial Consultancy Services Private Limited, A.K. Capital Services Limited, SPA Capital Advisors Limited and Srei Capital Markets Limited.
