SREI Infrastructure Finance NCD issue over-subscribed

KOLKATA: Srei Infrastructure Finance Limited on Monday said that its public issue of secured, redeemable non-convertible debentures (NCDs), with a base issue of Rs 250 crore has been oversubscribed by 1.33 times, amounting to Rs 332.60 crore.

The issue had opened for subscription on September 29, 2014 and closed on October 31, 2014.

According to the company release, Srei Infrastructure Finance had filed the shelf prospectus for raising Rs 1,500 crore from the market. The company launched the first tranche of Rs 250 crore on September 29, 2014. The bonds with a tenure of two years will offer an annual coupon of 10.75 % to institutional and non-institutional investors, while retail investors will get 11.25 %. Bonds maturing in three years will offer an annual coupon of 11 % to institutional and non-institutional investors and 11.50 % to retail investors. The 5-year bonds will yield 11.25 % to institutional and non- institutional investors and 11.75 % to retail ones. The company is offering a monthly coupon payment options for bonds maturing in 3 and 5 years.

"The over subscription indicates a growing retail appetite for secure investment products…. we will continue to periodically tap the market with NCDs," J. Moses Harding, Group CEO, liability and treasury management, Srei Infrastructure, was quoted in the release.

ICICI Securities, A.K. Capital Services, Edelweiss Financial Services, SPA Capital Advisors and Srei Capital Markets were lead managers to the issue. Karvy Investor Services, Integrated Enterprises (India), RR Investors Capital Services, SMC Capitals and Bajaj Capital were co-lead managers to the issue. Karvy Computer was registrar to the issue.