ICICI Lombard raises Rs 485-crore through NCDs
ICICI Lombard General Insurance, a private sector non-life insurer, today said it has raised Rs 485 crore through private placement of redeemable non-convertible debentures (NCDs).
Mumbai: ICICI Lombard General Insurance, a private sector non-life insurer, today said it has raised Rs 485 crore through private placement of redeemable non-convertible debentures (NCDs).
The company has successfully made private placement of 4,850 unsecured, subordinated, fully paid-up, listed, redeemable NCDs having a face value of Rs 10 lakh each, at par, aggregating to Rs 485 crore at an interest rate of 8.25 per cent per annum and a maturity period of 10 years, it said in a statement.
This is the first issuance of subordinated debt by an insurance company in the country. ICICI Securities Primary Dealership was the arranger for this issue.
"We are excited to be the first insurance company to have augmented our capital base by issuing subordinated debt, post the recent measures announced by Irda allowing alternative forms of capital. The successful closure of the issue is a testimony to shareholder confidence in the franchise," ICICI Lombard General Insurance managing director and CEO Bhargav Dasgupta said.
To further strengthen the company's efforts, it had decided to raise capital through the issuance of NCDs. The funds raised through this issue would be used for further strengthening the company's solvency by way of augmenting its capital under 'Other forms of capital' and thereby facilitate business growth, the statement said.
The NCDs will be listed on BSE and NSE. The issuance of these NCDs are in accordance with the provisions of the Irda (other forms of capital) Regulations, 2015.