CESC Limited’s board has approved the issuance of 30,000 redeemable, senior, secured, unlisted, rated non-convertible debentures. Each debenture has a face value of ₹1 lakh, aggregating to ₹300 crore. The issuance is on a private placement basis and carries a coupon rate based on the 3-month T-Bill Rate plus 2.30% per annum, payable quarterly. Maturity is set for September 26, 2028.
Debt Securities Issuance
A committee of the Board of Directors of CESC Limited approved the issuance of 30,000 Redeemable, Senior, Secured, Unlisted, Rated Non-Convertible Debentures (NCDs). The announcement was made on September 24, 2025.
Key Details of the NCDs
Here are the key terms of the debt issuance:
- Total Value: ₹300 crore
- Face Value per Debenture: ₹1 lakh
- Coupon Rate: 3 Months T-Bill Rate + 2.30% p.a.
- Frequency of Coupon Payment: Quarterly, starting from the quarter end date following the deemed date of allotment.
- Deemed Allotment Date: September 26, 2025
- Maturity Date: September 26, 2028
- Redemption Tenure: 3 years from the Deemed Date of Allotment.
- Listing: Unlisted
- Security: The NCDs are secured by a first ranking pari passu charge on the company’s assets.
Redemption Schedule
The principal redemption schedule includes quarterly interest payments and a final redemption on September 26, 2028.
Call/Put Option
A call/put option is available at the end of 12 months from the deemed date of allotment, at par value.
Security and Charge
The NCDs are secured by a first-ranking pari passu charge over the company’s immovable and movable assets, both present and future. This includes:
- Mortgage over immovable fixed assets.
- Hypothecation over movable fixed assets.
- Hypothecation over current assets until the Mortgage Document is executed.
Source: BSE