Mahindra & Mahindra Ltd. (M&M), one of India’s leading business groups, today announced that it has successfully placed a NCD series of 50-year maturity for Rs. 500 crore on private placement basis. The NCDs will be unsecured, rated, listed, redeemable at the end of 50th year and will carry a coupon of 9.55% pa payable annually. This is the first ever INR-denominated NCD issue with a 50-year bullet maturity offered by an Indian corporate. The successful placement of the NCDs is testimony to the unassailable reputation and credit worthiness of M&M.
The proceeds of this issue will be used for capex, long term working capital requirements and refinancing of loans taken for capital expenditure.
Credit Rating Agencies, CRISIL and ICRA have assigned AA+/stable rating to the issue.
“This is a benchmark deal as it has explored an uncharted maturity horizon and tries to extend the corporate bond yield curve beyond 30 years in the Indian bond market. It helps create space for our company’s future capital market offerings. It is a validation of M&M’s reputation for reliability and strong corporate governance standards, and the excellent credit profile it enjoys with the investors. We are proud of the fact that M&M is among the very select few Indian corporates who can create rather than follow markets,” said V.S. Parthsarathy, Group CIO, EVP – Group M&A, Finance & Accounts and Member of the Group Executive Board.
“This resonates with our philosophy of Rise which is built on the pillars of Accepting No Limits, Alternative Thinking and Driving Positive Change,” he added.
YES Bank was the sole arranger and underwriter for the deal.