Capital First to raise Rs 1,500-cr via bonds to fund business growth
Non-banking financial company Capital First, which is set to merge with IDFC Bank, will raise up to Rs 1,500 crore by issuing bonds on private placement basis.
"The debenture committee of the company today approved an issue of rated, listed, secured, redeemable, non-convertible debentures of Rs 1,000 crore plus green shoe option of Rs 500 crore on private placement basis," Capital First said in a regulatory filing.
Capital First will use the proceeds generated from this bond issuance for its lending purposes and other business needs.
The bonds will carry two options with coupon rates of 8.80 per cent each for maturities of two years and three years.
Capital First and IDFC Bank in January had announced a merger deal under which IDFC Bank will issue 139 shares for every 10 shares of the non-banking financial company.
The NBFC yesterday said that the NSE has given its prior approval for the amalgamation with respect to the merged company's trading membership in the currency derivatives segment.
The merger deal between IDFC Bank and Capital First and its group companies is yet to be approved by the Reserve Bank, stock exchanges, market regulator SEBI, the National Company Law Tribunal as well as respective shareholders and creditors of the amalgamated company and the amalgamating companies.
Post merger, the combined entity of IDFC Bank and Capital First will have asset under management of Rs 88,000 crore and a distribution network of 194 branches (as per branch count at end December 2017), 353 dedicated business correspondent outlets and over 9,100 micro ATM points to serve more than five million customers across the country.
Capital First specialises in lending to small entrepreneurs and consumers.
Capital First shares closed 2.89 per cent higher at Rs 636.80 on BSE. IDFC Bank was up 2.63 per cent at Rs 48.75.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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