CARE Ratings Ltd. NCDs rated A+ (Positive) by CARE offer an effective yield of up to 9.9% per annum across eight categories, with tenors of two to five years. Launched on Wednesday and scheduled to close on September 17, the additional Rs. 400 crore include the green shoe option, potentially taking the total fundraising to Rs. 800 crore will be taken.
According to a banking source, over 8,500 applications were received on the first day, with all investor categories—corporate, HNI and retail—almost 2x oversubscribed. High demand coupled with a first-come, first-served allotment process suggests that the issue may close before September 17.
These bonds are offered with various repayment structures including annual, cumulative and quarterly options. The highest yield available is 9.9% on 5-year bonds, while shorter durations of 24 months yield between 9.25% and 9.65%.
These safe NCDs provide 1.1 times security cover and do not include put or call options.
Trust Group, AK Capital and Nuwama Wealth Management are the managers for the issue.
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