It will also contribute effectively towards development of the commercial paper market and is expected to have a positive effect on the debt capital market, it added.
ABFL is a well-diversified non-banking finance company (NBFC) with a long-term credit rating of AAA (stable) from both ICRA as well as India Ratings.
CP is an unsecured money market instrument issued in the form of promissory notes that enables highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.
Commercial papers can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue. CP are usually issued at a discount from face value and reflects prevailing market interest rates.
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