Shares of India’s leading microfinance institution CreditAccess Grameen Ltd. gained more than 2 percent on Monday after the company announced that it would raise Rs 1,000 crore by issuing non-convertible debentures (NCDs).
The company said that its board has approved the public issue of secured rated, listed, redeemable NCDs of face value of Rs 1,000 each with a base size of Rs 400 crore. The issue comes with a green shoe option to be exercised in case of oversubscription of up to Rs 600 crore. This aggregates to a total issue size of Rs 1,000 crore.
The issue will be open for subscription from August 24, 2023, to September 6, 2023. The securities will list within six working days from the date of issue closure on both the National Stock Exchange of India and BSE.
The NCDs, rated IND AA-/Stable, will fetch a coupon rate of up to 9.7 percent per annuum with effective yield up to 10.13 percent per annum depending on the tenor of the bonds.
CreditAccess Grameen will launch seven series under the issue with a tenure of 24 months for Series I and II, 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 months, 36 months, 50 months and 60 months from the deemed date of allotment.
Notably, this is the second tranche of NCD issue for CreditAccess Grameen after the company raised Rs 500 crore last year from the November 2022 tranche I.
Shares of CreditAccess Grameen are trading 1.7 percent higher at Rs 1,391. The stock has gained nearly 55 percent so far in 2023.
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