Aditya Birla Finance to raise up to 2,000 Cr through its maiden Public issue of NCDs

Hyderabad/Mumbai, (UNI) Aditya Birla Finance Limited (ABFL), a subsidiary of Aditya Birla Capital Limited, on Monday announced its first public issue of Non-Convertible Debentures (NCDs) for an amount up to Rs.1,000 crores with an option to retain oversubscription up to Rs. 1,000 crore, aggregating up to 2,00,00,000 NCDs for an aggregate amount of up to Rs.2,000 crores.

The Issue will open on September 27 and close October 12, 2023 with an option of early closure, the company said in a release.

Issuance of secured, rated, listed, redeemable, non-convertible debentures of face value of Rs.1,000 each (“NCDs”) aggregating up to Rs.2,000 crore.

Rated IND AAA Outlook Stable by India Ratings & Research Private Limited and [ICRA]AAA (Stable) by ICRA Limited, the NCDs with tenor options of 3 years, 5 years or 10 years offered with ‘monthly’, ‘annual’ or ‘cumulative’ interest payment frequency.

Coupon rates range from 8.00% p.a. to 8.10% p.a. for annual options with effective yields ranging from 7.99% p.a. to 8.09% p.a. across various series.

The allotment will be on a first-come-first-serve basis.

The minimum application size of Rs.10,000 (10 NCDs) across all series collectively and in multiples of Rs.1,000 thereafter.

The Company proposes to utilise at least 75% of the net proceeds of the Issue towards onward lending, financing and repayment of interest and principal of existing borrowings of the Company and a maximum of up to 25% of the net proceeds towards general corporate purposes.

Trust Investment Advisors Private Limited, A.K. Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) are the lead managers to the Issue.

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