MUMBAI: Cholamandalam MS General Insurance raised Rs 100 crore through non-convertible debentures to fuel growth.
The coupon rate is 8.75% per annum and a maturity period of 10 years with a call option after 5 years.
“We have augmented our capital base by issuing subordinated debt,†said S S Gopalarathnam, MD & CEO, Chola MS General Insurance. “The funds raised through this issue would be used to fuel and facilitate business growth by further strengthening the Company’s solvency.â€
Recent, the Insurance Regulatory and Development Authority of India (IRDAI) had allowed alternative forms of capital. Chola MS is looking to grow its gross written premium by 40% to Rs 4,500 crore.
The company had solvency ratio of 1.63 at the end of March 31, 2017.
The NCDs have been assigned a credit rating AA+ (Outlook: Stable) by rating agencies CRISIL and ICRA. The NCDs will be listed in National Stock Exchange of India Limited.
