CESC Limited has announced the approval of an issue of 25,000 Secured, Unlisted, Redeemable, Rated Non-Convertible Debentures (NCDs). With a face value of ₹1 lakh each, the total aggregate issue size is ₹250 crore, to be raised on a private placement basis. The NCDs will have a tenure of approximately 9 years and 10 months, with a coupon rate linked to the 3 Months T-Bill Rate plus a spread.
CESC Announces Debt Issuance
CESC Limited’s Committee of the Board of Directors has approved the issuance of 25,000 Secured, Unlisted, Redeemable, Rated Non-Convertible Debentures (NCDs). The face value for each debenture is set at ₹1 lakh, resulting in a total issue size aggregating to ₹250 crore. This fundraising exercise will be conducted on a private placement basis.
Key Debenture Terms
The debentures are scheduled for allotment on August 5, 2026, with a maturity date of June 30, 2036. The total redemption tenure is approximately 9 years and 10 months from the allotment date. Interest will be paid monthly at a coupon rate of 3 Months T-Bill Rate plus 2.60% per annum. In case of delayed payments beyond three months, an additional interest of 2% per annum will be applicable.
Security and Repayment
The NCDs will be secured by a first ranking pari passu charge over the Company’s immoveable and moveable fixed assets, both present and future, with a security cover of 1.25x. A principal redemption schedule is detailed, with amounts ranging from ₹2.50 crore to ₹10.00 crore payable on various dates throughout the tenure, culminating in a final redemption of ₹10.00 crore on June 30, 2036. A call/put option is available at the end of 3 years from the deemed date of allotment at par.
Source: BSE
