Mahindra Finance on Monday said it will raise Rs 1,000 crore through retail bond sale. The public issue of the non convertible debentures (NCDs), the first from the company, will open on May 25 and closes on June 10, said the NBFC from the Mahindra group.
Mahindra Finance vice chairman and managing director Ramesh G Iyer said it is their maiden NCD issue and if there is good traction for the issue the company may come up with more such offerings in future. The NCDs, bearing a fixed rate of interest, are being offered under nine different series the interest rate for which will be ranged between 8.60 per cent and 9 per cent. The funds raised through this Tranche 1 issue will be used for onward lending, financing, refinancing the existing indebtedness of the company, long-term and working capital and general corporate purposes.
In next 3 years Mahindra Finance is looking at crossing the book size of Rs 10,000 crore under its SME segment. “We see SME segment as new segment whose book size currently was at Rs 3,000 crore. In next 3 years we are looking at crossing the mark of Rs 10,000 crore,” he said.