(Corrects headline, first paragraph in April 9 story to drop reference to the bond issue being the company's first public debt sale)

MUMBAI, April 9 (Reuters) - India's Capri Global Capital will raise 5 billion rupees ($54.05 million) through a public bond issue, and will rely more on debt markets than bank loans for funding this fiscal year, a top executive said on Thursday.

The issuance marks the first tranche of a larger 20 billion-rupee plan through public issues.

"We aim to launch a couple of public issues in the financial year, once the first issue sees success," Managing Director Rajesh Sharma said.

The non-banking finance company will issue bonds with maturities of two, three, five and 10 years. For the three- and five-year tenors, investors can also choose monthly interest payouts.

The company will offer annual coupon rates of 9.00% for two-year bonds, 9.15% for three-year, 9.30% for five-year, and 9.50% for 10-year bonds.

For investors opting for monthly payouts, the rates are slightly lower: 8.80% for three-year bonds and 8.93% for five-year bonds, translating into effective yields of 9.15% and 9.30%, respectively.

The bonds are rated 'AA' by Acuite Ratings and Infomerics Valuation, and will open for subscription on April 15. The proceeds will be used for on-lending and for interest payments on existing borrowings.

In the broader market, Indian companies raised around 107 billion rupees through public debt issues in the previous financial year, up from 81.5 billion rupees in fiscal 2025.

FOCUS ON DEBT

The company, which has assets under management of around 300 billion rupees, is looking to increase the share of capital market borrowings on its books and will focus more on bond issuances this year.

"Apart from the public issue, we will also continue to tap the private placement and commercial paper market," Sharma said.

Currently, capital markets comprise around 20% of the company's total borrowings, and Capri aims to raise that share to around 40%-50%, the MD added.

($1 = 92.5030 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips and Sonia Cheema)

By Dharamraj Dhutia