INDIAN NEWS & TIMES

Friday, October 20, 2017

Mr_Ramesh_Iyer_VC___MD_MMFSLMahindra & Mahindra Financial Services Limited (“Company” or “Mahindra Finance”), one of the leading non-banking finance companies with customers primarily in the rural and semi-urban markets of India, plans to raise NCDsvia public issue which is opening on July 10, 2017.

The NCDs proposed to be issued under this Tranche 1 Issue have been rated ‘IND AAA’/ Outlook Stable’ for an amount of Rs. 2,00,000 lakhs, by India Ratings & Research Private Limited (“India Rating”) and ‘BWR AAA, Outlook: Stable’ for an amount of Rs. 2,00,000 lakhs, by Brickwork Ratings India Private Limited (“BWR”). The rating of NCDs by India Ratings and BWR indicate that instruments with this rating are considered to have highest degree of safety regarding timely servicing of financial obligations and carry lowest credit risk. The NCDs offered through this Tranche 1 Prospectus are proposed to be listed on the BSE Limited (“BSE”).

These NCDs, bearing a fixed rate of interest, are being offered under three different Series. For Category I (QIB Portion) and Category II (Corporate Portion) holders, the coupon rate for Series I, Series II and Series III having tenure of 7 years, 10 years, 15 years respectively, shall be 7.75%, 7.90% and 7.95% p.a., respectively, payable annually.

While for Category III (HNI Portion) and Category IV (Retail Individual Investor Portion) holders, the coupon rate for Series I, Series II and Series III having tenure of 7 years, 10 yedownload (9)ars, 15 years  respectively, shall be 7.85%, 8.00% and 8.05% p.a., respectively, payable annually.

Subject to compliance with applicable laws, in case of Series III NCDs, call option may be exercised by the Company at the end of the 10th year from the Deemed Date of Allotment. In the event of call option being exercised for Series III NCDs, the Redemption Date for Series III NCDs shall be 10 years from Deemed Date of Allotment or such date for exercising the call option as intimated by the Company.

Investors have an option for allotment of NCDs only in dematerialized form.

The funds raised through this Tranche 1 Issue will be used for onward lending, financing, refinancing the existing indebtedness of the Company, long-term and working capital and general corporate purposes.

Edelweiss Financial Services Limited, Axis Bank Limited, A. K. Capital Services Limited, Trust Investment Advisors Private Limited and Yes Securities (India) Limited are the Lead Managers to the Issue. Axis Trustee Services Limited is the Debenture Trustee, while Karvy Computershare Private Limited is the Registrar to the Issue.