The company's current solvency ratio is at 205, well in excess of the regulatory requirement of 150.
"This debt capital raise, which is the largest by any insurance company in the country this year, will further increase our resilience and financial strength and the proceeds shall be utilised for normal business activities," the management said.
The NCDs will be listed on the wholesale debt market of the NSE.
The NCDs offer a coupon of 6.85 per cent per annum and a tenor of 10 years with a call option at the end of the fifth year, and annually thereafter.
The subordinated debt instrument carries AAA ratings from both Crisil and Icra.
NS Kannan, the managing director and chief executive 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".
"While our solvency ratio is already at 205, we have proactively used the opportunity offered by benign debt market conditions for the benefit of all our stakeholders.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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