Issue of Non-Convertible Debentures (NCDs) on Private Placement basis and Foreign currency denominated bonds under ECB Framework
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Mufin Green Finance's Management Committee approved issuing listed, secured Non-Convertible Debentures (NCDs) of up to ₹75 crore (including a ₹25 crore green shoe option) on private placement basis. The NCDs will have a face value of ₹10,000 each, a 15-month tenure, 10% annual coupon paid monthly, and will be listed on BSE. Separately, the company also approved foreign currency bonds under the External Commercial Borrowings (ECB) framework worth up to USD 6 million, with a 36-month tenure, interest at 6-month CME SOFR + 450 bps, semi-annual payments, and listing on India International Exchange (IFSC). Both instruments will be secured by a first and exclusive charge on identified receivables.
This is a fundraising move to strengthen the company's lending capital, with relatively modest borrowing costs (10% on rupee NCDs, SOFR-linked for dollar bonds). For shareholders, it means incremental debt on the balance sheet, though the short tenures and receivable-backed security limit duration risk. No equity dilution since these are debt instruments.