Aditya Birla Finance, a subsidiary of Aditya Birla Capital, has announced its first public issue of non-convertible debentures (NCDs) for an amount up to Rs 1,000 crore with an option to retain oversubscription up to Rs 1,000 crore for an aggregate amount of up to Rs 2,000 crore. The issue will open on Wednesday, September 27, 2023, and close on Thursday, October 12, 2023, with an option of early closure, the company said in an exchange filing.

Allotment of NCDs shall be made, in consultation with the designated stock exchange, on a date priority basis, i.e., a first-come, first-serve basis, it said.

The tenor options available will be 3 years, 5 years or 10 years offered with ‘monthly’, ‘annual’ or ‘cumulative’ interest payment frequency. The coupon rates will range from 8 percent to 8.10 percent for annual options with effective yields ranging from 7.99 percent to 8.09 percent across various series.

Issue structure

The terms of each series of the NCDs, offered under the issue are set out below:

(Source: Regulatory filing)

The company has proposed to utilise at least 75 percent of the net proceeds of the issue towards onward lending, financing and repayment of interest and principal of existing borrowings of the company and a maximum of

up to 25 percent of the net proceeds towards general corporate purposes.

The NCDs proposed to be issued pursuant to this issue have been rated IND AAA Outlook Stable and rated

(Edited by : Anshul)