Capri Global Eyes 500 Crore Debt Market Debut

Capri Global Capital plans to raise 5 billion rupees through its first public bond issuance, with further public issues anticipated if this initial offering proves successful. This move signifies a strategic pivot, with the non-banking finance company intending to rely more heavily on debt markets than bank loans for its funding needs in the current fiscal year.

The company is offering bonds with maturities of two, three, five, and ten years. Annual coupon rates will range from 9.00% for two-year bonds up to 9.50% for ten-year bonds. Investors interested in monthly interest payouts can opt for slightly lower rates on three- and five-year tenors. These bonds, rated 'AA', will open for subscription on April 15, with proceeds allocated for on-lending and servicing existing debt.

Capri Global, managing assets worth approximately 300 billion rupees, aims to boost the proportion of capital market borrowings in its overall funding mix from the current 20% to between 40% and 50%. Alongside public issues, the company will also utilize private placements and the commercial paper market to achieve its fundraising goals.