![Bond](https://img.etimg.com/thumb/msid-91585098,width-210,height-158,imgsize-75782,resizemode-75/bond.jpg)
The bonds, rated A, will offer as much as 9.75% with 27-month maturity. Another series will offer 9.50% with 18-month maturity.
"The company has a digital retail interface, which can be strengthened via public issuance of bonds even if a retail issue is a bit more expensive than private placement," said one of the people.
The company aims to diversify its borrowing sources amid an evolving credit market. Navi Finserv did not respond to ET's emails seeking comment.
The base size of the proposed issuance is pegged at ₹300 crore with an option to retain oversubscriptions up to another ₹300 crore. The bond sale will open for subscription on May 23 and is expected to close by June 10. Bonds will be listed both on the BSE and the NSE.
![b b](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
'A' Rating by Ind-Ra
AK Capital and JM Financial are helping it raise the bonds.
Navi Finserv is a subsidiary of Navi Technologies, which is likely to raise about ₹ 3,350 crore via an initial public offering in the next two to three months. Navi Finserv is registered with the RBI as a non-deposit taking systemically important company.
India Ratings has given the proposed bonds an A rating (stable outlook). "With fast growth and less than two-year tenors posing increasing vulnerability to event risks, including deteriorating macro-economic environment, Ind-Ra expects the group to operate within the modest leverage along with adequate liquidity buffers," the rating company said in a note.
Navi Finserv earlier raised funds via market-linked debentures, bank loans and privately placed non-convertible debentures. It has an outstanding borrowing book of about ₹2,600 crore, while loan assets are estimated to be around ₹3,500 crore.
Loan App
The company does not involve any third party to generate customers, who apply for personal or home loans via an app. It disburses loans to homebuyers across seven cities, including Bengaluru, Mumbai, New Delhi, Pune, Chennai, Hyderabad and Mysuru, with an average ticket size of ₹60 lakh.
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Read More News on
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price