LIC subscribes to Bajaj Finance’s ₹5,000 crore NCDs

Account subscription benefits alongside Premium Stories, Editorials, Opinions and more. Unlock these with Subscription

Life Insurance Corporation of India (LIC). File | Photo Credit: Reuters

The Life Insurance Corporation of India (LIC) has subscribed to ₹5,000 crore nonconvertible debentures (NCDs) of Bajaj Finance.

Also read | Mcap of four of top-10 most valued firms erodes ₹87,960 crore; Airtel takes biggest hit

It has subscribed to five lakh NCDs, of face value of ₹1 lakh each, of the deposit-taking non-banking financial company, totalling ₹5,000 crore, the State-owned insurer said in a filing.

Separately, Bajaj Finance in a filing said allotment of the NCDs aggregating to ₹5,000 crore on a private placement basis follows its debenture allotment committee’s approval. The instruments carry a coupon rate of 8.15% per annum and a tenure of 3,653 days (ten years). The first coupon payment will be on Aug 27, 2027 and annually thereafter. The maturity date of the NCDs is August 27, 2036.

LIC said the funds raised through this issue will be utilised for the general business purposes of the company, including various financing activities, to repay the company’s existing loans, capital expenditure and working capital requirements.

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.