Rs 600 cr to be raised by Srei Infra in FY15
Srei Infrastructure Finance plans to raise Rs 600 crore in FY15 through retail bonds.
Moses Harding, group chief executive officer (liability and treasury management) and chief economist of Srei Infrastructure Finance said “The objective is to reach out the Srei brand into the retail segment, broaden the investor/lender base and de-risk concentration from bank funding. We would plan to raise a minimum of Rs 600 crore this financial year (FY15) in four tranches, similar to what was done in the last financial year.”
60 per cent of the overall issue size is reserved for retail investors and the remaining is for institutional and non-institutional investors according to the investors’ presentation.
The company is also offering additional coupon of 0.25 per cent a year for existing bondholders as well as equity shareholders of the company.
The tenure of the non-convertible debentures are three years and five years with coupon rates ranging between 10.70 per cent and 12 per cent.
The effective yields are in the range of 11.23 per cent to 12 per cent a year.
Monthly, annually and cumulative are the three options available for interest payment. The issue opens on Friday and closes on June 9. The minimum application for all the categories is Rs 10,000 and in multiples of Rs 1,000 thereafter.
Brickwork Ratings rated The issue “AA-” with stable outlook by CARE Ratings and “BWR AA”
Funds raised through this issue will be utilised for various financing activity to repay our existing loans and for business operations according to the investors’ presentation.
ICICI Securities, AK Capital, SPA Securities and Srei Capital Markets are The lead managers for the issue.
Source: Business Standard
AA, AK Capital, Bondholders, Brickwork Ratings, BWR AA, Care Ratings, ICICI Securities, Moses Harding, SPA Securities, Srei Capital Markets, SREI Infrastructure Finance
