Srei Equipment Finance to raise up to Rs 500 Crore through Public Issue of Secured Redeemable NCDs

Chandigarh, December 26, 2016: Srei Equipment Finance Limited ("SEFL"), a wholly-owned subsidiary of Srei Infrastructure Finance Limited ("Srei"), is proposing a public issue of secured redeemable non-convertible debentures ("NCDs") of face value Rs 1,000 each amounting up to Rs 500 crore ("Overall Issue Size"). The issue opens on January 3, 2017 and will close on January 20, 2017 (with an option of early closure).

SEFL is one of India's leading equipment finance institutions.

The NCDs offer an annualized coupon of up to 9.75% p.a. with a credit rating of "BWR AA+" (BWR Double A Plus) (Outlook: Stable) by BRICKWORK and "SMERA AA/Stable" (SMERA Double A/Stable) by SMERA. Instruments with such ratings are considered to have a high degree of safety regarding timely servicing of financial obligations. The issue is proposed to be listed with the BSE Limited ("BSE" or "Designated Stock Exchange") and the National Stock Exchange of India Limited ("NSE" and together with "BSE" referred to as "Stock Exchanges").

Commenting on the proposed NCD issue, Mr. Sanjeev Kumar, Senior Vice President and Head – Resource Mobilisation (Retail Liabilities), Srei said: "Secured NCDs are a good investment option in the current market scenario as it gives investors the opportunity to lock their money for longer period in a falling interest rate scenario. Public issue of NCDs will diversify the investor base in bond market, which is extremely important for making the bond market more vibrant. SEFL NCDs are considered a good investment option as Srei with a legacy of over 25 years believes in living up to the trust and interest of its stakeholders and investors."

The object of the proposed issue is to raise funds for various financing activities, to repay the company's existing loans and business operations, etc. The lead managers to the issue are Edelweiss Financial Services Limited, Trust Financial Consultancy Services Pvt. Ltd, A.K. Capital Services Limited, Karvy Investor Services Limited, and Srei Capital Markets Limited.