In the first issuance by a general insurer, ICICI Lombard General Insurance has raised `485 crore through private placement of non-convertible debentures at an interest rate of 8.25% with a maturity of 10 years.
The Insurance Regulatory and Development Authority (Irda) has allowed insurance companies to raise subordinated debt to boost their capital base.
ICICI Lombard on Monday said it has done private placement of 4,850 unsecured, subordinated, fully paid-up, listed, redeemable, non-convertible debentures having face value of `10,00,000 each, at par, aggregating to `485 crore.
The issue will help ICICI Lombard in strengthening its capital position. It had solvency margin of 1.82 at the end of March 31. The regulator requires companies to have solvency of 1.5 times. The company has total capital of `1,948 crore. It networth was `3,176 crore at the end of March.
Source:-The Economic Times-Mumbai