Trivandrum: Kerala Financial Corporation (KFC) has successfully raised Rs. 750 crores in two tranches by issuing Non-Convertible Debentures (NCDs). The issue has a term of 10 years and was raised through the BSE BOND, the Electronic Book Platform (EBP) of BSE. The first tranche of Rs. 476.50 crores was raised at a coupon rate of 8.90% on March 23, 2023 while the second tranche of Rs. 273.50 crores was raised at a coupon rate of 8.63% on April 28, 2023.
It is notable that KFC was able to raise funds at a rate better than the major public sector Banks/ State PSUs. KFC is one of the few Public Sector Undertakings in the State with AA Credit rating given by RBI/SEBI-approved rating agencies.
“The strong demand from investors for KFC bonds underscores the market confidence in the financial strength of KFC and our sustainability-driven strategy as well,” said Sanjay Kaul, CMD of KFC in a press release.
Recently the Government of Kerala infused Rs.200 crore capital to the Corporation increasing its net worth to approximately Rs. 900 crores. KFC has raised Rs. 2,626.50 crores so far from bond markets since 2011 of which Rs. 772.30 crores have been redeemed so far.
Since 2016, the Corporation has been raising funds without Government guarantee based on the strength of its balance sheet. The funds from the present issue will be utilised for financing the projects under the CMEDP, the flagship entrepreneurship development program of the State Government, being implemented by KFC.