Capital First will pay additional 2% interest to bondholders if it fails to pay on due date

MUMBAI: Finance company, Capital First, has said that they would pay additional two percent interest to their bondholders if the company fail to payments on due date. The company has proposed to raise Rs 100 crore from the bond market at 8.35 per cent for three years.

This means that in case of default, the bond holders will receive 10.35 per cent on their investments.

According to the information provided to the bondholders, the company has said, “Additional interest of 2 per cent per annum calculated for the period from the date on which an payment is due by the issuer until the date the payment is made.”

The company had posted net profit of Rs 69 crore in the fourth quarter ending March 2017, up 56 per cent on a year on year basis.