HDFC ERGO RAISES RS 350 CR THROUGH NCD AND STRENGTHENS ITS SOLVENCY - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
Trending
Powered by Blogger.
Tuesday, January 17, 2017

HDFC ERGO RAISES RS 350 CR THROUGH NCD AND STRENGTHENS ITS SOLVENCY

HDFC ERGO RAISES RS 350 CR THROUGH NCD AND STRENGTHENS ITS SOLVENCY

HDFC ERGO General Insurance Company, India’s third largest 
non-life insurance provider in the private sector, has raised Rs.350 crore through 
Non-Convertible Debentures (NCDs). 

This was done by way of the private placement of unsecured, 
subordinated, redeemable, NCDs of face value Rs. 10 Lac each.

HDFC ERGO NCDs are raised as the subordinated debt of the company. 
The NCDs were issued on 9th November, 2016 which carry a 
coupon rate of 7.6% p.a., have been listed on the 
Bombay Stock Exchange and have a tenure of 10 years with
 a call option at the end of 5 years. 

The NCDs are AAA rated, with stable outlook, by leading credit 
rating agencies CRISIL and ICRA. Instruments with the AAA 
(pronounced triple-A) rating are considered to have the highest 
degree of safety regarding timely servicing of financial obligations. 
The proceeds of the NCDs issue will be used by the company 
to strengthen its solvency position.

Commenting on the announcement, Mr. Ritesh Kumar, Managing Director 
& CEO, HDFC ERGO General Insurance Company Ltd. said:
 “Raising Rs.350 crore through the NCD issue is a significant event 
for HDFC ERGO this year and comes soon after the acquisition of 
L&T General Insurance. We are very excited; this fund-raising of 
subordinated debt will strengthen the financial position of the company 
and pave the path for future growth.”

Since insurance is a capital-intensive business, subordinated debt 
capital plays a significant role. Insurers, like banks, too are now
allowed to raise subordinated debt under IRDAI’s Other Forms 
of Capital Regulations. 

HDFC ERGO holds a market share of 4.3% (as of H1FY 2017) 
and is the 3rd largest private non-life insurance company.

About HDFC ERGO:
HDFC ERGO General Insurance Company is a 51:49 joint venture
 between HDFC Ltd.; India’s premier Housing Finance Institution
and ERGO International AG; the primary insurance entity of the Munich 
Re Group of Germany. The company offers complete range of general 
insurance products ranging from Motor, Health, Travel, Home and 
Personal Accident in the retail space and customized products like
 Property, Marine and Liability Insurance in the corporate space. 
HDFC ERGO is expanding its network across the country and is today 
present in 108 branches spread across 91 cities with an employee base
 of over 2000 professionals. The Company also has a wide distribution
 network besides its own direct sales force.


For more information please contact:
Siddharth Patkar
HDFC ERGO General Insurance Company Limited
Contact No.: +91 9167211021

Binu Thomas
Metigon Enterprises
Cell: +91 9699840237

HDFC ERGO RAISES RS 350 CR THROUGH NCD AND STRENGTHENS ITS SOLVENCY Reviewed by S. Chitra on January 17, 2017 Rating: 5 HDFC ERGO RAISES RS 350 CR THROUGH NCD AND STRENGTHENS ITS SOLVENCY HDFC ERGO General Insurance Company, India’s third largest  non-l...

No comments:

Google+ Followers