This is the second bond raising by India’s largest NBFC-MFI after raising Rs 500 crore in November last year.
“The issue is in sync with our efforts to strengthen the asset liability profile, diversify liabilities and raise long term resources,” managing director Udaya Kumar Hebbar told ET.
The lender will be offering 9.1% interest rate on bonds with 24 months maturity while the rate will be higher at 9.7% for 60 months. The issue will open on August 24 and will remain open for subscription till September 6.
The rates are in line with the company’s average cost of funds of 9.6%.
The issue carries a base size of Rs 400 crore with an option to retain oversubscription up to another Rs 600 crore. The company’s board approved the plan Friday. This is within the shelf limit of Rs 1,500 crores as announced on March 23, last year.
India Ratings rated the bonds as “AA- (stable), depicting high ability of the issuer to meet financial obligations.CreditAccess earlier reported a 2.5 fold year-on-year rise in net profit at Rs 349 crore for the June quarter, backed by healthy business expansion. Its net interest margin for the quarter improved to 13% from 11.1% in the year ago period while gross loan portfolio expanded by 49% to Rs 21814 crore with borrower base growing 20% to 44.2 lakh.