CESC To Allot NCDs Worth Rs 250 Crore To Axis Bank
The securities, which will be allotted on a private placement basis, will mature on April 11, 2030.
The board of CESC Ltd. on Friday issued its nod for the allotment of non-convertible debentures worth Rs 250 crore to Axis Bank on a private placement basis.
A committee of the board of directors at its meeting held on Friday has "approved the allotment of 25,000 secured, unlisted, redeemable, rated non-convertible debentures with a face value of Rs 1 lakh each", according to the power utility company's exchange filing.
As a result, the allotted debentures will have an aggregate value of Rs 250 crore on a private placement basis to Axis Bank.
Earlier, on April 7, the Kolkata-based company had intimated via a regulatory disclosure that its board will be considering the proposal on Friday.
According to that filing, while the allotment date of the securities will be April 11, 2025, the maturity date will be of five years later—April 11, 2030. It added that the coupon rate of the instrument will be 2.67%.
At the end of three years from the deemed date of allotment, the debentures will have a call/put option with an at par price, the filing stated.
In case of default of payment of any amount payable by the company under a transaction document on its due date, an additional interest of 2% per annum, over and above the coupon rate, shall be payable, the filing said.
Shares of CESC Ltd. closed 2.34% higher at Rs 153.35 apiece on the BSE, compared to a 1.77% advance in the benchmark Sensex.
