Mahindra & Mahindra Financial Services Limited has informed the Exchange about Issuance of NCDs
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Mahindra & Mahindra Financial Services Limited has announced the issuance of Secured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) via private placement. The issue size is up to Rs. 1,000 crore, comprising a base issue of Rs. 750 crore with a green shoe option of additional Rs. 250 crore. Each debenture has a face value of Rs. 1 lakh. The tenure is approximately 1 year and 285 days (650 days), with maturity scheduled for 21st February 2028. The coupon rate offered is a fixed 7.90% per annum, payable semi-annually. The NCDs will be listed on the Wholesale Debt Market segment of BSE Limited. The issue is secured by an exclusive charge on the company's receivables, hire purchase contracts, lease agreements, owned assets, and book debts to the extent of 100% of outstanding debentures.
This NCD issuance provides Mahindra & Mahindra Financial Services with debt capital to fund its lending operations, typical for an NBFC. The 7.90% coupon rate reflects current market borrowing costs. The listing on BSE's WDM segment makes this accessible to institutional investors. This is standard refinancing activity and does not directly impact equity shareholders, but successful fund-raising supports the company's growth in its auto and rural finance businesses.