Mahindra and Mahindra Financial Services has approved the issuance of Non-Convertible Debentures (NCDs) worth up to ₹1,250 crore. The decision was made during a meeting of the company’s Committee of Directors on September 23, 2024. This issuance will be conducted through a private placement and is within the overall borrowing limits approved by shareholders and the Board.
The NCDs, set to be listed on the Wholesale Debt Market segment of BSE, include an initial issue size of ₹750 crore, with an option to raise an additional ₹500 crore through a green shoe option. These secured, rated, and redeemable NCDs will have a tenure of 3 years and 89 days, maturing on December 24, 2027. The fixed coupon rate for the issuance is set at 8.01% per annum.
The company has ensured that the NCDs will be secured by an exclusive charge on present and/or future receivables and assets, free from any encumbrances, with appropriate security created in favor of the debenture trustee as per applicable laws.
