CHENNAI, May 31:Cholamandalam MS General Insurance Company has raised Rs 100 crore as part of its growth plans during the current financial year, a top company official said today.
Cholamandalam MS General Insurance Company is a joint venture between diversified business conglomerate Murugappa Group and Japan-based Mitsui Sumitomo Insurance Company Ltd.
“Cholamandalam MS General Insurance has announced successful private placements of 1,000 unsecured, subordinated, fully paid-up capital, non-convertible debentures (NCDs) having face value of Rs 10,00,000 each, at par, aggregating to Rs 100 crore”, the city-based company said in a statement.
“The coupon rate is 8.75 per cent per annum and a maturity period of 10 years with a call option after five years,” it said.
“We have augmented our capital base by issuing subordinated debt, post the recent measures announced by the Insurance Regulatory and Development Authority of India, allowing alternative forms of capital,” the company’s Managing Director and CEO, S S Gopalarathnam said.
“The funds raised through this issue would be used to fuel and facilitate business growth by further strengthening the company’s solvency,” he said.
On the outlook for 2017-18, he said, “Chola MS is poised to grow its Gross Written Premium to Rs 4,500 crore, a growth of 40 per cent over last fiscal.”
The NCDs would be listed in the National Stock Exchange Ltd and are in accordance with the provisions of IRDAI, it added.
Chola MS currently has 110 branches and 20,000 agents across the country, the statement added. (AGENCIES)
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