The Kerala Financial Corporation (KFC) has successfully raised Rs 307 crore through the issuance of Non-Convertible Debentures (NCDs). The 10-year term bond was issued via the BSE Electronic Book Platform (EBP) on 13 March, featuring a coupon rate of 8.89 per cent, as announced by KFC.
Being one of the select public sector undertakings in the State, KFC boasts an AA credit rating bestowed by RBI/SEBI-approved rating agencies. Sanjay Kaul, the Chairman and Managing Director of KFC, expressed satisfaction over the lower coupon rate and the robust investor demand for KFC bonds. He attributed this positive response to the market's confidence in KFC's financial robustness and its sustainability-driven strategy.
Earlier in March, the State government had allocated Rs 100 crore to the corporation, thereby bolstering its net worth to over Rs 1,000 crore. Encouraged by this reinforcement, KFC intends to further leverage the bond market to raise approximately Rs 700 crore in the upcoming financial year.