HDFC ERGO RAISES RS 350 CR THROUGH NCD AND STRENGTHENS ITS SOLVENCY

HDFC ERGO RAISES RS 350 CR THROUGH NCD AND STRENGTHENS ITS SOLVENCY

HDFC ERGO General Insurance Company, India’s third largest 

non-life insurance provider in the private sector, has raised Rs.350 crore through 

Non-Convertible Debentures (NCDs). 

This was done by way of the private placement of unsecured, 

subordinated, redeemable, NCDs of face value Rs. 10 Lac each.

HDFC ERGO NCDs are raised as the subordinated debt of the company. 

The NCDs were issued on 9^th November, 2016 which carry a 

coupon rate of 7.6% p.a., have been listed on the 

Bombay Stock Exchange and have a tenure of 10 years with

 a call option at the end of 5 years. 

The NCDs are AAA rated, with stable outlook, by leading credit 

rating agencies CRISIL and ICRA. Instruments with the AAA 

(pronounced triple-A) rating are considered to have the highest 

degree of safety regarding timely servicing of financial obligations. 

The proceeds of the NCDs issue will be used by the company 

to strengthen its solvency position.

Commenting on the announcement, Mr. Ritesh Kumar, Managing Director 

& CEO, HDFC ERGO General Insurance Company Ltd. said:

 “Raising Rs.350 crore through the NCD issue is a significant event 

for HDFC ERGO this year and comes soon after the acquisition of 

L&T General Insurance. We are very excited; this fund-raising of 

subordinated debt will strengthen the financial position of the company 

and pave the path for future growth.”

Since insurance is a capital-intensive business, subordinated debt 

capital plays a significant role. Insurers, like banks, too are now

allowed to raise subordinated debt under IRDAI’s Other Forms 

of Capital Regulations. 

HDFC ERGO holds a market share of 4.3% (as of H1FY 2017) 

and is the 3rd largest private non-life insurance company.

About HDFC ERGO:

HDFC ERGO General Insurance Company is a 51:49 joint venture

 between HDFC Ltd.; India’s premier Housing Finance Institution
and ERGO International AG; the primary insurance entity of the Munich 

Re Group of Germany. The company offers complete range of general 

insurance products ranging from Motor, Health, Travel, Home and 

Personal Accident in the retail space and customized products like

 Property, Marine and Liability Insurance in the corporate space. 

HDFC ERGO is expanding its network across the country and is today 

present in 108 branches spread across 91 cities with an employee base

 of over 2000 professionals. The Company also has a wide distribution

 network besides its own direct sales force.

For more information please contact:

Siddharth Patkar

HDFC ERGO General Insurance Company Limited

Contact No.: +91 9167211021

Email: corpcomm@hdfcergo.com

Binu Thomas

Metigon Enterprises

Cell: +91 9699840237

Email: binu.thomas@metigon.com

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