📈 Mahindra Ideal Finance Debenture Issue Oversubscribed on Day 1

Mahindra Ideal Finance Ltd (MIFL) successfully concluded its debut listed debenture issue, raising Rs. 1 Billion after being oversubscribed on its first day of opening. The capital raise marks a significant milestone for the non-banking financial institution (NBFI) sector. • Issue Details: The offering comprised 10 million Tier 2, listed, rated, unsecured, subordinated, redeemable debentures at a par value of Rs. 100 each, featuring a five-year tenure maturing in 2031. • Dual Structures: Investors were offered two options: - Type A: Fixed rate of 12.00% p.a. (payable annually). - Type B: Floating rate of 364-day T-Bill + 3.50% (payable semi-annually). • Strategic Impact: Proceeds will be deployed to strengthen lending capacity in SME loans, vehicle leasing, gold loans, and business loans, directly supporting credit accessibility for local communities. • Regulatory & Rating: The move strengthens MIFL’s Tier 2 capital base in line with Central Bank of Sri Lanka adequacy requirements. The issue carried an A (lka) rating from Fitch Ratings, while the entity maintains an AA- (lka) rating with a Stable Outlook. • Partners: The issue was managed by NDB Investment Bank Ltd, with Bank of Ceylon acting as Joint Placement Agent.