SCUFL to raise Rs.500 Cr.through Secured NCD :Sachin Murdeshwar

SCUFL to raise Rs.500 Cr.through Secured NCD

 

Mumbai 4thSept.2012.(Sachin Murdeshwar):Shriram City Union Finance Limited (SCUFL), a NBFC registered with RBI and the largest small enterprise finance company in India*, plans to raise fund through a public issue of Secured Non Convertible Debentures  of face value of Rs. 1,000 each (“NCDs”) aggregating up to Rs. 250 crores with an option to retain over-subscription up to Rs.250 crores for issuance of additional NCDs aggregating to a total of up to Rs. 500 crores, The The Issue opens on September 12, 2012 and will close on September 26.The NCDs proposed to be issued under this Issue have been rated “CARE AA” by CARE for an amount of up to Rs.500 crores, and “CRISIL AA-/Stable” by CRISIL for an amount of up to Rs.500 crores. The rating of the NCDs by CARE indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk. The rating of NCDs by CRISIL indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.The funds raised through this Issue, after meeting Issue expenses, will amongst others, be used for Shriram City’s various financing activities including lending and investments. The funds would also be used to repay the Company’s existing loans; for business operations including capital expenditure and working capital requirements. The NCDs are proposed to be listed on the NSE and the BSE.JM Financial Institutional Securities Private Limited, A. K. Capital Services Limited  and Edelweiss Financial Services Limited are the Lead Managers to the Issue while Integrated Enterprises (India) Limited is the Registrar to the Issue.