The board of Raymond on Tuesday approved a proposal to raise Rs 2,200 crore through non-convertible debentures (NCDs) on a private placement basis.

“The board of directors have approved issuance of NCDs for up to Rs 2,200 crore in two or more tranches on a private placement basis to Raymond Consumer Care for repayment of external debt, subject to receipt of necessary approvals required under applicable law,’’ Raymond said in a regulatory filing.

The NCDs will have a tenure of 730 days from the deemed date of allotment which is May 10. It will offer an interest rate of 9 per cent.

The announcement came on a day the worsted suitings maker reported a 26 per cent decline in its consolidated net profit at Rs 196.48 crore for the fourth quarter, on account of exceptional items. It had posted a net profit of Rs 263 crore a year ago.

However, net revenues were up 8 per cent to Rs 2,192 crore from Rs 2,032 crore a year ago.