Kerala Financial Corporation, a Thiruvananthapuram based Financial Institution, has successfully raised ₹307 crore by issuing Non-Convertible Debentures (NCDs). The 10-year term bond was raised through the BSE Electronic Book Platform (EBP) at a coupon rate of 8.89 per cent.

KFC is one of the few public sector undertakings in the State with AA Credit rating given by RBI/ SEBI approved rating agencies and hence, the company could raise funds at a better rate than the major public sector banks/ State PSUs in this rising interest scenario.

“The lower coupon and strong demand from investors for KFC bonds underscores the market confidence in the financial strength of KFC and our sustainability-driven strategy as well,” said Shri.Sanjay Kaul, CMD of KFC.

The Kerala Government Kerala has infused Rs100 crore capital to the Corporation thus increasing its net-worth to above ₹1000 crore. Since 2016, the Corporation has been raising funds based on the strength of its balance sheet, without government guarantees.

The funds from the present issue will be utilised for financing the projects under various schemes to promote the MSME sector of the State.

KFC will be raising further funds from the bond market to the tune of nearly ₹700 crore in the next FY.