Cholamandalam Plans Record 20 Billion Rupee Perpetual Bond Sale

Cholamandalam Investment and Finance Co. plans to raise up to 20 billion rupees ($209 million) through the issuance of perpetual bonds. If successful, the move would mark the largest perpetual debt sale by a private financier in India, equaling a 2023 record set by the state-run REC Ltd.

The Chennai-based shadow lender intends to seek bids as early as next week. The company expects the bonds to be callable after 10 years, although it has not yet finalized the coupon rate or other specific terms.

This capital raise aims to strengthen the company's capital buffer to sustain double-digit credit growth. The initiative follows a period of significant expansion, with the company reporting a 22% increase in loans during the quarter ending in June.