India-based Cholamandalam Investment and Finance Company (CHOLAFIN) plans to raise 10 billion rupees ($115.1 million) through the issuance of bonds maturing in three years. The bonds will carry an annual coupon of 8.20%, according to reports from multiple merchant bankers. The company has invited bids from bankers and investors for the issue, which will be open on Friday. The issue size includes a greenshoe option of 5 billion rupees.
This is not the only bond issuance being reported in India today. Other notable deals include a 10-year bond issuance from HDFC Life Insurance, which will have an 8.10% coupon and a 10 billion rupee ($115.1 million) size. Axis Max Life Insurance is also planning a 10-year bond issuance with a coupon rate to be determined and a size of 5 billion rupees. Additionally, Bank of Maharashtra is planning a 10-year bond issuance with a coupon rate to be determined and a size of 5 billion rupees.
The three-year bond from CHOLAFIN has been rated AA+ by Icra, India Ratings, while the HDFC Life Insurance and Axis Max Life Insurance have been rated AAA and AA+, respectively, by Icra. The Bank of Maharashtra’s bond has been rated AA+ by both Icra and Care. The listing of these bond issuances is expected to affect the Indian bond market, particularly with CHOLAFIN’s issue size being significant and worth around 10 billion rupees.