SBI Cards and Payment Services (SBI Card) on Friday announced that it has raised Rs 650 crore through issuance of bonds on a private placement basis, the company informed in a regulatory filing. Bearing an interest rate of 5.82 per cent, the bonds have a tenure of three years and will mature on December 24, 2024.
"We hereby inform that stakeholders' relationship and customer experience committee of the company has approved the allotment of 6,500 fixed rate, unsecured, rated, taxable, redeemable, senior, listed non-convertible debentures (NCDs) aggregating to Rs 650 crore on private placement basis," SBI Card said in a release.
SBI Card stock, on Friday, was trading nearly flat at Rs 906 apiece on BSE.
Also Read: SBI Cards Q2 results: Net profit increases by 13% to Rs 345 crore
The company stated that it will pay the principal first interest payment on December 26, 2022, the second payment will be made on December 26, 2023, and the last and final payment will be made on December 24, 2024, along with maturity proceeds.
SBI Card MD and CEO Rama Mohan Rao Amara had said earlier this year that the company has been seeing over 50% of its transactions through online payments such as groceries, utility bills, insurance premium.
The company reported a 67 per cent jump in net profit at Rs 345 crore for the September quarter on the back of good growth in retail and corporate spends.
The pure-play credit card company had registered a net profit of Rs 206 crore in the same period a year ago. Total income increased by 7 per cent to Rs 2,695 crore during July-September period of FY22, from Rs 2,510 crore in Q2 FY21.
Also Read: SBI collected Rs 346 crore since FY18 in additional services fee