SMFG India Credit raises Rs 600 crore in Perpetual Debt Instruments via ECB route
Summary
SMFG India Credit Co. Ltd on January 10 said it has raised Rs 6 billion (Rs 600 crore) in Perpetual Debt Instruments (PDI) through the External Commercial Borrowing (ECB) route.These funds has been raised from Sumitomo Mitsui Banking Corporation (SMBC), Tokyo, the company said in a release.PDI are debt instruments with no maturity and issuers keeps paying interest forever till either the company dissolves, closes down, or till the investor holds the bond.ALSO READ: Indian state-run banks may look to equity fundraising as perpetual bonds lose sheenThe company further said that issuance of PDI has supported SMFG India Credits Tier I capital base, reflecting the continuous and robust support from its parent company, Sumitomo Mitsui Financial Group (SMFG).With this issuance, the capital adequacy ratio improves by 160 basis points (Bps). Since these bonds are perpetual, the issuance also strengthens asset liability profile, Pankaj Malik, CFO, SMFG India Credit was quoted saying in a release.SMFG offers a diverse range of financial services including commercial banking, leasing, securities and consumer finance headquartered in Japan.SMFG is listed on the Tokyo and New York (via ADR) Stock Exchanges.SMFG India Credit started its India operations in 2007 and has established a pan India presence across 600 towns and 65,000+ villages through 750+ branches and 18,000+ employees offering lending products to underserved & unserved retail and small business borrowers, the release said.