SREI Infrastructure Finance Ltd NCD (SREI Infra Finance NCD May 2014) Detail

Objects of the Issue

According to the declaration by the company in offer documents, the funds raised through this Issue, after meeting the expenditures of and related to the Issue, will be used for our various financing activities, to repay existing loans and business operations including capital expenditure and working capital requirements, subject to applicable statutory and/or regulatory requirements. The main objects clause of the Memorandum of Association permits the Company to undertake its existing activities as well as the activities for which the funds are being raised through this Issue. Further, in accordance with the Debt Regulations, Company will not utilize the proceeds of the Issue for providing loans to or acquisition of shares of any person or company who is a part of the same group and who is under the same management or any subsidiary of the Company. The Issue proceeds shall not be utilized towards full or part consideration for the purchase or any other acquisition, inter alia by way of a lease, of any property. Further, the Company undertakes that Issue proceeds from NCDs allotted to banks shall not be used for any purpose which may be in contravention of the RBI guidelines on bank financing to NBFCs including those relating to classification as capital market exposure or any other sectors that are prohibited under the RBI regulations.

Ratings

This issue is rated CARE/AA- (Double A Minus) by CARE and BWR/AA (Double A) by BRICKWORK, indicating high degree of safety regarding timely servicing of financial obligations.