Non-bank lender Mahindra & Mahindra Financial Services Ltd on Thursday said it has approved the issuance of up to ₹2,000 crore of secured, rated, listed, redeemable non-convertible debentures through private placement. The issue has a base size of ₹1,000 crore and a green shoe option of an additional ₹1,000 crore.
The company will issue up to 2,00,000 NCDs with a face value of ₹1 lakh each. The NCDs will carry a fixed coupon of 7.95% per annum and will be listed on the Wholesale Debt Market Segment of BSE Ltd. The debentures will have a tenure of 2 years and 364 days, or 1,095 days, from the deemed date of allotment.
The deemed date of allotment is September 29, 2026, while the maturity date is September 28, 2029. The third coupon payment will be ₹7,928.22 per debenture on September 28, 2029, along with the principal amount of ₹1 lakh per debenture. The NCDs will be secured through an exclusive charge in favour of the debenture trustee over present and/or future receivables under loan contracts, hire purchase and lease, owned assets and book debts, to the extent of 1.1 times the outstanding debentures.
The security will be created over assets that are free from encumbrances. In case of a default in payment of coupon or principal on the due dates, additional interest of 2% per annum over the coupon will be payable for the defaulting period. The issuance is within the overall borrowing limits approved by shareholders and the authorisation granted by the board.
Shares of Mahindra Mahindra Financial Services Ltd ended at ₹339.00, down by ₹9.65, or 2.77%, on the BSE.