India New Issue-Tata AIG General Insurance to issue subordinated bonds - bankers

MUMBAI, Sept 21 (Reuters) - India's Tata AIG General Insurance plans to raise at least 2 billion rupees ($24.12 million) through the sale of subordinated bonds maturing in 10 years, two merchant bankers said on Thursday. The general insurance company will pay an annual coupon of 8.15% on this issue and has invited bids for the same on Tuesday, the bankers said. The bond issue will have a call option at the end of five years. In December 2019, Tata AIG raised 1.85 billion rupees through the sale of similar-structured bonds at an 8.85% annual coupon. On Sept. 15, Reuters reported that the general insurance company plans to tap the bond market after nearly four years. Here is the list of deals reported so far on Sept. 21 Issuer Tenure Issue size (in Rating Coupon bln rupees)* Bidding (in %) date Tata AIG General 10-yr 8.25 2 + 3.45 Sept. 26 AAA (Icra, Insurance India Ratings) Tata Capital Financial 8-yr and 11 To be 0.4 + 2 Sept. 22 AAA (Crisil, Services reissue mnts decided Icra) *Size includes base plus greenshoe for some issues ($1 = 82.9200 Indian rupees) (Reporting by Dharamraj Dhutia; Editing by Janane Venkatraman)