by NR INDRAN / INT

Shriram City Union Finance  (SCUF) plans to raise funds up to Rs 500 crore through a public issue of Secured Non Convertible Debentures (NCD) of face value of Rs 1,000 each.

This includes an option to retain over-subscription up to Rs 250 crore for issuance of additional NCDs.

The Issue opens on September 12, 2012 and closes latest by September 24, 2012.

The tenure of the NCD  ranges from 36 months to 60 months.

The NCDs proposed to be issued have been rated “CARE AA” by CARE  for an amount of up to Rs 500 crore, and “CRISIL AA-/Stable” by CRISIL for an amount of up to Rs 500 crore.

The ratings of the NCD indicate high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.

The Company ED cum CFO Ms Subhasri  Sriram told mediapersons here today,” The funds raised through this NCD issue will primarily be used for SCUF’s various financing activities including lending and investments.

The funds would also be used to repay 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, A K Capital Services and Edelweiss Financial Services are the lead managers to the NCD issue while Integrated Enterprises (India) is the registrar to the issue

You can contact author @ [email protected]