On Friday, India’s leading private sector life insurer ICICI Prudential Life Insurance Company said that it has raised Rs 1,200 crore of debt capital through private placement of Non-Convertible Debentures (NCDs).
“Strategy Committee, through its resolution dated November 6, has allotted 12,000 unsecured, rated, listed, redeemable, subordinated, taxable, fully paid-up, non-cumulative NCDs, each bearing a face value of ₹10 lakh aggregating to Rs 1,200 crore,” said the insurer in a regulatory filing.
ICICI Prudential has a solvency ratio of 205 per cent as on 30 September, 2020, against the regulatory requirement of 150 per cent. The private sector insurer said that the debt capital raised will be used to further increase the resilience and financial strength of the company and the proceeds shall be utilised in meetings the general working capital requirements.
NS Kannan, MD & CEO, ICICI Prudential Life Insurance Company said, “We are delighted with the market response to our maiden subordinated debt capital raise through NCDs. The issue was tightly priced at a coupon rate of 6.85 per cent per annum”.
The NCDs issued by the insurer is in the form of subordinated debt, with a coupon rate of 6.85 per cent per annum and has a tenure period of 10 years with a call option at the end of 5 year period. It carries AAA ratings from both the Crisil and Icra and will be listed on the wholesale debt market of the National Stock Exchange (NSE).