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Srei Infra plans to raise Rs150 crore from NCD sale

LiveMint logoLiveMint 09-05-2014 Joel Rebello

Mumbai: Kolkata-based non-banking finance company Srei Infrastructure Finance Ltd plans to raise `150 crore from individual and institutional investors by selling non-convertible debentures (NCDs) maturing in three years and five years.

The NCD issue, which opened on Friday, is offering individuals a yield of 12% with interest payable on a monthly, annual or a cumulative basis.

“The funds raised through this issue will be repay existing loans and our business operations including for our capital expenditure and working capital requirements,” the company said in press release.

John Moses Harding, group head of treasury management at Srei Infrastructure, said the company wants to broaden its investor base and reduce dependence on bank funding by issuing NCDs.

“We plan to reduce our bank borrowings to 60-70% of our total funding over the next three years from 85% to 90% at present,” Harding said.

This is the company’s fifth such issue. It has reserved 60% of the issue for individual investors.

The company finances commercial and construction equipment, infrastructure projects and also does project advisory work.

The NCDs will be listed on both the BSE and the National Stock Exchange.

ICICI Securities Ltd, A.K. Capital Services Ltd, SPA Capital Advisors Ltd and Srei Capital Markets Ltd are the lead managers to the issue.

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