Mahindra & Mahindra Financial Services Limited has informed the Exchange regarding allotment of NCDs
M&MFIN · price
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Mahindra & Mahindra Financial Services has allotted 2,20,000 Secured, Rated, Floating, Listed Redeemable Non-convertible Debentures (NCDs) totaling Rs. 2,200 crore on private placement basis. The issue comprises a base size of Rs. 2,000 crore plus a green shoe option of Rs. 200 crore. Each debenture has a face value of Rs. 1 lakh issued at par. The NCDs carry a floating coupon rate of 3MTBILL+2.10% spread, payable annually with quarterly resets. The tenure is approximately 3 years, maturing on 18th May 2029. The NCDs will be listed on the Wholesale Debt Market Segment of BSE Limited. This is a standard capital raise by the NBFC arm of the Mahindra Group to fund its lending operations.
This debt issuance provides liquidity support for M&M Financial Services' lending book. The floating rate structure protects the company from interest rate risk but increases borrowing costs if rates rise. The successful Rs. 2,200 crore fundraise signals investor confidence in the company's creditworthiness, though existing shareholders face dilution of debt ratios.