Mumbai: Piramal Capital & Housing Finance is raising up to Rs 3,000 crore through an issue of bonds offering interest at 9.25% per annum. The issue comes at a time when the company has proposed to merge troubled home loan provider with itself.
The bonds are rated AA by CARE and come with the assurance that, should the rating fall by even one notch to AA-, the coupon rate would stand increased by 0.50%. For every notch of rating downgrade thereafter, the coupon would be increased by 0.50% per notch. If the long-term credit rating of the non-convertible debentures is downgraded to A- or below, the holders would reserve the right to recall the outstanding principal amount.
Last month, Piramal Group had announced that it had received the RBI’s clearance for its Rs 34,250-crore acquisition of DHFL. The group had also said that it would merge DHFL with Piramal Capital & Housing Finance once the same is approved by the NCLT.
