Commercial Credit and Finance to raise up to Rs. 5 bn via high-yield bond issue

Commercial Credit and Finance PLC shared that the board has approved a plan to raise up to Rs. 5 billion through the issuance of listed, rated, unsecured, subordinated high-yield bonds.

The company will initially issue 30 million bonds at a par value of Rs. 100 each to raise Rs. 3 billion. An additional 20 million bonds, amounting to Rs. 2 billion will be issued in the event the initial tranche is oversubscribed, subject to regulatory and other approvals.

The bonds will carry a tenor of five years, with principal repayment on maturity. They will not be convertible into ordinary voting shares.

The company said other terms of the bond issue, including interest rate, whether the rate will be fixed or floating, payment frequency, and allotment basis, will be disclosed in due course.