CreditAccess Grameen to raise Rs 1,000 crore through NCDs

CreditAccess Grameen Ltd announced that it would raise Rs 1,000 crore by issuing non-convertible debentures (NCDs). 

The company said that its board of directors has authorized the public offering of secured rated, listed, redeemable NCDs with a face value of Rs 1,000 each and a base size of Rs 400 crore. The issuance includes a green shoe option that can be exercised in the event of Rs 600 crore oversubscription. This amounts to Rs 1,000 crore total issue size.

The issue will be open to subscription from August 24, 2023, until September 6, 2023. The securities will be listed on the National Stock Exchange of India and the Bombay Stock Exchange within six working days after the issuance date.

Depending on the bond's tenure, the NCDs, which are rated IND AA-/Stable, will have an annual coupon rate of up to 9.7 percent and an effective yield of up to 10.13 percent.

CreditAccess Grameen will issue seven series, with terms ranging from 24 months for Series I and II through 33 months for Series III and IV, 50 months for Series V and VI, and 60 months for Series VI and VII.

The redemption date would be 24, 36, 50, or 60 months after the deemed date of allotment.

Notably, this is CreditAccess Grameen's second NCD tranche, following Rs 500 crore raise last year from the November 2022 tranche I.

Source: Media Reports