CESC Limited has informed the Exchange regarding 'Issue of Debt Securities'.
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CESC Limited's Board Committee has approved the issue of 30,000 Redeemable, Senior, Secured, Unlisted, Rated Non-Convertible Debentures (NCDs) of face value Rs. 1 lakh each, aggregating Rs. 300 crore, on a private placement basis. The deemed date of allotment is September 26, 2025, with final redemption on September 26, 2028 (3-year tenure). The NCDs carry a floating coupon of 3-Month T-Bill Rate + 2.30% per annum, payable quarterly, with a call/put option at par at the end of 12 months. The instrument is secured by a first-ranking pari passu charge on the company's immovable and movable fixed assets, and current assets until the mortgage is executed. The issue is being done on a private placement basis and the NCDs will not be listed on any stock exchange.
CESC is raising Rs. 300 crore of fresh debt through privately placed, secured NCDs at a floating rate linked to the T-Bill rate. This is a modest raise for the company and adds to its overall debt stack, but the secured nature, 3-year tenure, and call/put option at 12 months provide some flexibility. For shareholders, the floating-rate structure means interest costs will move with short-term rates, and the secured status means existing lenders/shareholders have a new pari passu claim on company assets.