Kerala Finance Corporation raises ₹307 crore through NCD issue

March 15, 2024 08:17 pm | Updated 08:18 pm IST - THIRUVANANTHAPURAM

The Kerala Financial Corporation (KFC) has raised ₹307 crore by issuing Non-Convertible Debentures (NCDs). The 10-year term bond was raised through the BSE Electronic Book Platform (EBP) on March 13 at a coupon rate of 8.89%, the KFC said.

KFC is one of the few public sector undertakings in the State with AA Credit rating given by RBI/SEBI-approved rating agencies. “The lower coupon and strong demand from investors for KFC bonds underscores the market confidence in the financial strength of KFC and our sustainability-driven strategy as well,” KFC Chairman and Managing Director Sanjay Kaul said.

In the first week of March, the State government had issued orders infusing ₹100 crore to the corporation thus increasing its net worth to above ₹1,000 crore. The KFC plans to raise further funds from the bond market to the tune of nearly ₹700 crore in the next financial year.