Capri Global Capital has formalized the issuance of senior, secured USD-denominated non-convertible bonds worth up to USD 30 million. The bonds, carrying a tenure of 36 months, will be listed on international exchanges at GIFT City. This move marks the company’s push to secure foreign currency funding, with the interest pegged to the SOFR benchmark.
Capri Global Capital Approves USD 30 Million Bond Issuance
Up to USD 30,000,000 issue size. 36-month tenure with semi-annual interest.
Reader Takeaway: The company leverages USD-denominated debt at SOFR-linked rates to diversify funding, though foreign currency risk remains.
What just happened
Capri Global Capital Limited’s Management Committee has finalized terms for a private placement of USD-denominated, senior, secured, rated, and redeemable non-convertible bonds. The company intends to raise up to USD 30 million through the issuance of 3,000 bonds at a face value of USD 10,000 each. The issuance carries a coupon rate of 240 basis points over the 6-month CME Term SOFR, with semi-annual interest payments.
Why this matters
This issuance represents a strategic move by Capri Global Capital to tap into foreign currency debt markets. By choosing a SOFR-linked variable rate, the company aligns its borrowing costs with global benchmarks. The bonds are secured by a first-ranking, pari-passu charge over identified receivables, providing a layer of security for prospective institutional investors participating in the IFSC market.
What changes now
The company has appointed India International Depository IFSC Limited as the Registrar and Transfer Agent (RTA). The bonds are scheduled for listing on the India International Exchange (IFSC) Limited and/or NSE IFSC Limited, signaling the company's commitment to building a presence in the GIFT City financial ecosystem.
Risks to watch
As with all USD-denominated debt, the company faces potential currency volatility risks regarding repayment and interest servicing. Additionally, a specific default clause stipulates an additional 2% penalty interest per annum over the coupon rate if the company fails to meet payment obligations.
What to track next
Shareholders should monitor the formal execution of the RTA agreement, which is expected between October 19 and October 25, 2026. Further updates regarding the actual allotment date and the subsequent deployment of the capital into the company’s lending operations will be the next key milestone.