Cholamandalam Investment to issue perpetual bonds, bankers say

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Cholamandalam Investment and Finance plans to raise ₹10 billion selling perpetual bonds maturing in 10 years, three merchant bankers said on Tuesday.

The company will pay an annual coupon of 9.50 per cent and has invited bids from bankers and investors on Wednesday, they added.

The issue will have a call option at end of 10 years and the coupon would be stepped up by 100 basis points if the call option is not exercised.