Mahindra & Mahindra Financial Services Limited has informed the Exchange about issue of NCDs
M&MFIN · price
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Mahindra & Mahindra Financial Services Limited has approved issuance of secured NCDs worth up to Rs. 3,000 crore through private placement. The base issue is Rs. 2,000 crore with a green shoe option for additional Rs. 1,000 crore. Each debenture has a face value of Rs. 1 lakh, with up to 300,000 NCDs being issued. The tenure is approximately 3 years (2 years and 364 days), maturing on 18th May 2029. The coupon is floating at 3-month T-bill rate plus 2.10% spread, payable annually with quarterly resets. The NCDs will be listed on the Wholesale Debt Market segment of BSE Limited and are secured by exclusive charge on receivables, owned assets, and book debts to 100% of outstanding debentures.
This NCD issuance will help M&M Financial raise capital to fund its lending operations. The floating rate structure transfers interest rate risk to investors, while the Rs. 3,000 crore size is significant for a NBFC. The secured nature with 100% asset cover provides comfort to debenture holders. The issuance is within existing shareholder-approved borrowing limits.