HDFC Life Insurance announced on Wednesday its plan to raise Rs 1,000 crore through non-convertible debentures (NCDs) to support business expansion. The decision, approved by the Capital Raising Committee of the company’s board, was disclosed in a regulatory filing.
The funds will be raised via unsecured, rated, listed, subordinated, redeemable, fully paid-up, non-cumulative NCDs. The debentures, with a 10-year tenure, will be issued at a coupon rate of 8.05% per annum on a private placement basis.
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The company stated that these debentures will not be secured or backed by a company guarantee or other arrangements that enhance claim seniority over policyholders and other creditors. The NCDs will be listed on the Wholesale Debt Market segment of the National Stock Exchange of India Ltd (NSE).
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