India’s HDFC Ergo General Insurance Company is planning to raise 3.5 billion rupees (approximately $11.47 million) through the sale of subordinated bonds with a 10-year maturity period. The company has invited bids from bankers and investors for the issue, with the bidding process set to take place on March 13. The interest rate for the bonds has not yet been disclosed. This is the latest development in a series of bond issuance deals reported on March 11, including a 7.68% yield offered by LIC Housing Finance for a 4-year bond issue.
It’s worth noting that HDFC Ergo General Insurance did not respond to a request for comment from Reuters on this matter. If successful, the bond issue would further solidify the company’s financial position, allowing it to diversify its funding sources and manage risk more effectively. The exact terms of the bond issue, including the coupon rate, will be determined through the bidding process.
The success of the issue is likely to depend on market conditions, investor appetite, and the company’s credit rating. HDFC Ergo General Insurance has AAA ratings from credit rating agencies Crisil and Icra, which should help attract investor interest. The company’s shareholders and investors will be keenly watching the outcome of this issue, as it will impact the company’s future financial performance and creditworthiness. Overall, the bond issuance marks an important development in HDFC Ergo General Insurance’s funding strategy, and investors will be closely monitoring the company’s progress in the coming days.