Chennai, (IANS) : City based private non-life insurer Cholamandalam MS General Insurance Company Ltd on Wednesday said it has raised Rs 100 crore by privately placing 1,000 unsecured redeemable non-convertible debentures (NCD).

In a statement issued here, the company said the NCD’s will be listed in NSE.

The 10-year NCD has a coupon rate of 8.75 per cent. The NCD has a call option after five years.

“We have augmented our capital base by issuing subordinated debt, post the recent measures announced by the Insurance Regulatory and Development Authority of India (IRDAI), allowing alternative forms of capital,” Managing Director and CEO S.S. Gopalarathnam said in the statement.

According to him, the funds raised through this issue would be used to fuel and facilitate business growth by further strengthening the company’s solvency.

The company is targeting a gross written premium of Rs 4,500 crore this fiscal, a growth of 40 per cent over its 2016 figure.