Capri Global Capital Completes Rs 160 Crore NCD Allotment

Aggregate Issuance: Rs 160 crore
Coupon Rate: 9.75% per annum

Reader Takeaway: The company secured long-term funding at a 9.75% fixed rate, though unsecured status increases credit risk profile.

What just happened

Capri Global Capital Limited (CGCL) has successfully completed the allotment of 16,000 rated, listed, subordinated, unsecured, taxable, redeemable Non-Convertible Debentures (NCDs) under Series 18. The total value of the issuance stands at Rs 160 crore. The debentures carry a face value of Rs 1,00,000 each.

Why this matters

This issuance serves as a strategic move for the company to bolster its long-term funding requirements. By tapping into the private placement market for a 10-year tenure, the firm is locking in capital to support its ongoing business operations. The provision for a 9.75% coupon rate payable monthly offers a steady income stream for the subscribed investors.

Terms and Conditions

The NCDs are scheduled to mature on October 13, 2036. A key feature of this issuance is the penalty clause for non-payment: in the event of a default, the company is liable to pay an additional interest of 2% per annum over the base coupon rate until the default is rectified. The debentures will be redeemed at par upon maturity and are slated for listing on the BSE.

Risks to watch

As these NCDs are unsecured and subordinated, they carry a higher risk profile compared to secured debt instruments. Investors should monitor the company’s ability to maintain cash flows for monthly interest payments over the 10-year duration.

What to track next

The primary focus remains on the upcoming listing process on the BSE and any subsequent credit rating updates concerning the company's debt obligations.