Mahindra & Mahindra Financial Services Limited (Mahindra Finance), one of the leading non-banking finance companies with customers primarily in the rural and semi-urban markets of India, plans to undertake a public issue of NCDs opening on January 04, 2019.
The NCDs proposed to be issued under this Tranche I Issue have been rated ‘CARE AAA (Triple A); Stable by Credit Analysis & Research Ltd. (“CARE”) and ‘IND AAA; Stable’ by India Ratings & Research Private Limited (“India Rating”) for an amount of Rs. 10,000 crores. The rating of NCDs by CARE and India Ratings indicate that
instruments with this rating are considered to have highest degree of safety regarding timely servicing of financial obligations and carry lowest credit risk. The NCDs offered through this Tranche I Prospectus are proposed to be listed on the BSE Limited (“BSE”).
These NCDs, bearing a fixed rate of interest, are being offered under four different Series. Series I (39 months), Series II (60 months) and Series III (96 months) are offered as Secured NCDs while Series IV (120 months) is offered as Unsecured Subordinated NCDs.
The coupon rate on Series I, Series II, Series III and Series IV NCDs for Category I (QIB) and Category II (Corporate) holders is 9.00%, 9.10%, 9.20% and 9.35% p.a., respectively, payable annually. The coupon rate on Series I, Series II, Series III and Series IV NCDs for Category III (HNI) and Category IV (Retail Individual) holders is 9.05%, 9.15%, 9.30% and 9.50% p.a., respectively, payable annually.
The funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, refinancing the existing indebtedness, long term working capital and for general corporate purposes.
Edelweiss Financial Services Limited, A. K. Capital Services Limited, Axis Bank Limited, ICICI Securities Limited,SBI Capital Markets Limited, Trust Investment Advisors Private Limited and Yes Securities (India) Limited are the Lead Managers to the Issue. Axis Trustee Services Limited is the Debenture Trustee, while Karvy Fintech Private Limited is the Registrar to the Issue.