MUMBAI, – India’s Shriram Housing Finance plans to raise at least 650 million rupees ($7.91 million) selling bonds maturing in two years and 10 months, three merchant bankers said on Thursday.
The non-banking financial company will pay a coupon that is 57 basis points higher than one-year marginal cost of lending rate of
, and this would be payable on a quarterly basis, they said.
The coupon initially works out to be 8.62%, and the issue will mature in October 2025.
The company has invited commitment bids from bankers and investors on Monday and the issue will close for subscription next week.
The bonds are rated AA by India Ratings, and have a greenshoe option to retain an additional 350 million rupees.
In September, Shriram Housing Finance had raised 350 million rupees from sale of bonds maturing in 15 years at an annual coupon of 8.60%.
