By Susanna Moon
Chicago, July 14 – Mahindra & Mahindra Ltd. notified the Bombay Stock Exchange that it sold Rs. 9.75 billion of debentures in two tranches via a private placement.
The company sold Rs. 4.75 billion of 7.57% debentures due 2026 and Rs. 5 billion of 9.55% debentures due 2063, according to the company notice.
The company said on July 7 that it planned to issue up to Rs. 20 billion of unsecured subordinated redeemable debentures due in seven, 10 and 15 years with an offer close date of July 28.
As announced July 5, the company plans to sell up to Rs. 2.5 billion of the subordinated debentures with an over-allotment option for another Rs. 17.5 billion.
The notes will be sold at a face value of Rs. 1,000 each in a public issue, with the options as follows:
• For holders in category 1 and 2, the issuer is offering 7¾% seven-year notes with an effective yield of 7.76%, 7.9% 10-year notes with an effective yield of 7.91% and 7.95% 15-year notes with an effective yield of 7.95%; and
• For holders in category 3 and 4, the issuer is offering 7.85% seven-year notes with an effective yield of 7.86%, 8% 10-year notes with an effective yield of 8.01% and 8.05% 15-year notes with an effective yield of 8.05%.
The 15-year notes will be callable after 10 years.
Mahindra & Mahindra Ltd. is a Mumbai-based manufacturer of tractors and light commercial vehicles.
| Issuer: | Mahindra & Mahindra Ltd.
|
| Issue: | Secured redeemable debentures
|
| Amount: | Rs. 9.75 billion
|
| Notice date: | July 13
|
|
|
| 2026 notes
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| Amount: | Rs. 4.75 billion
|
| Maturity: | Sept. 25, 2026
|
| Coupon: | 7.57%
|
|
|
| 2063 notes
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| Amount: | Rs. 5 billion
|
| Maturity: | Sept. 25, 2063
|
| Coupon: | 9.55%
|
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