Religare Enterprises Limited announced that its material subsidiary, Care Health Insurance Limited (CHIL), has successfully allotted ₹150 crore in unsecured, subordinated, listed, taxable, redeemable, non-convertible debentures. These debentures carry a coupon rate of 10.50% per annum and have a face value of ₹1,00,000 each. The allotment was made for cash, at par, in dematerialized form, with a tenor of 10 years from the deemed date of allotment, October 30, 2026.
Religare Enterprises Subsidiary Funds Growth with New Debentures
Religare Enterprises Limited has disclosed the issuance of new debt instruments by its material subsidiary, Care Health Insurance Limited (CHIL). CHIL has successfully allotted ₹150 crore worth of debentures, structured as unsecured, subordinated, listed, taxable, redeemable, and non-convertible instruments. These debentures are in the nature of a ‘Subordinated Debt’ aligned with IRDAI laws and SEBI NCS Regulations.
Key Terms of the Debenture Issuance
The newly allotted debentures have a coupon rate fixed at 10.50% per annum. Each debenture carries a face value of ₹1,00,000 (Rupees One Lakh), totaling ₹150 crore (Rupees One Hundred Fifty Crore) for the entire issuance. The allotment was conducted for cash, at par, and the debentures are in dematerialized form.
Maturity and Redemption Details
The tenor of these debentures is set for 10 years from the deemed date of allotment, which is October 30, 2026. Consequently, the maturity date is scheduled for October 30, 2036. CHIL retains the option to exercise a call option at the end of 5 years and every year thereafter, subject to regulatory compliance and terms outlined in the key information document.
Interest Payment Conditions
Interest on the debentures will be charged to CHIL’s profit and loss account and paid annually. However, payment of interest is contingent upon IRDAI laws. Prior approval from IRDAI is required if CHIL’s solvency margin falls below control levels, if interest payment impacts solvency margins negatively, or if it results in a net loss or increases existing net losses. Unpaid interest will be cumulated and paid on subsequent dates or redemption, compounded annually.
Non-Applicability of Certain Provisions
The disclosure also clarifies that any cancellation of servicing or non-payment of interest will not be construed as an event of default or breach of transaction documents. CHIL will be restricted from distributing dividends to its equity shareholders in such scenarios. Similarly, non-payment of penal interest due to IRDAI provisions will not be considered an event of default.
Source: BSE
