Banking and Finance Companies

Mahindra Ideal debenture oversubscribed on day one

Mahindra Ideal Finance Limited (MIFL) has successfully concluded its debut Rs 1 billion debenture issue, which was oversubscribed on the first day.

The offering included up to 10 million Tier 2, listed, rated, unsecured, subordinated, redeemable debentures at a par value of Rs. 100 each, maturing in 2031. The proceeds will strengthen MIFL’s lending capacity across vehicle leasing, gold loans, SME loans, and business loans, according to Managing Director/CEO Mufaddal Choonia. “The strong market response validates investor confidence in our growth story,” Choonia said, adding that the funds will help provide accessible credit for customers and communities.

The issue, carrying a Fitch Lanka credit rating of A (lka), offered two structures: a fixed 12% annual rate and a floating rate linked to the 364-Day Treasury Bill plus 3.5%.

NDB Investment Bank managed the issue, with the Bank of Ceylon as joint placement agent.

Source - Sunday Observer