Non-convertible debentures (NCDs) are generally not backed by any collateral and thus highly depend on the creditworthiness and reputation of the issuer.
Mumbai: Non-convertible debentures (NCDs) are fixed-income instruments with fixed interest rates and issued for specific terms. As the name suggests, NCDs cannot be converted into equity shares. It is generally not backed by any collateral and thus highly depend on the creditworthiness and reputation of the issuer. They help companies accumulate long-term capital appreciation and also offer relatively higher interest rates to investors. Non-banking finance company Standard Capital Markets Limited is news as it has announced the issuance of non-convertible debentures worth Rs 900 crore.
The NBFC, in an exchange filing, said that its board has approved a proposal for the issuance of NCDs having a face value of Rs 1,00,000 each, aggregating up to an amount of Rs 9,00,00,00,000 (Rs 900 crore) in one or more tranches on a private placement basis.
“Approved the issuance of Secured, Unlisted, Unrated, Redeemable Non-convertible Debentures (“NCDs”) having a face value of INR 1,00,000 (Indian Rupees One lakh) each, aggregating up to an amount of INR 9,00,00,00,000/- (Indian Rupees Nine Hundred Crores Only) in one or more tranches on a Private Placement basis, in accordance with the provisions of Companies Act, 2013 and other applicable Regulations,” the company said in an exchange filing,” the filing reads.
Meanwhile, the company has informed exchanges that it is awaiting approvals from regulatory authorities, including the Reserve Bank of India (RBI), to explore international markets as part of a broader strategy to expand its financial services portfolio and strengthen its global footprint.
As part of this initiative, the NBFC said that it is evaluating opportunities to establish overseas subsidiaries and strategic partnerships in key global financial hubs
“The proposed international ventures will focus on secured and unsecured lending, trade finance, and wealth management solutions, tailored to both individual and institutional clients,” the company said.
