Mahindra & Mahindra on Tuesday raised Rs 500 crore in a 50-year unsecured bond sale programme,becoming the first Indian corporate to sell a long-tenure rupee debt instrument.
The 50-year bonds with bullet redemption will carry an interest rate of 9.55 per cent per annum. Theres no call or put option.
Crisil has assigned its Crisil AA+/Stable rating to the 50-year non-convertible debenture issue.
The issuance of such long-term instruments highlights the increasing depth and maturity of the Indian debt market. In the past,Indian corporates have looked towards international markets for such issuances. With the introduction of such long-term instruments,Indian corporates can now also tap the domestic markets for long-term funds, said Pawan Agrawal,senior director,Crisil Ratings.