JM Financial Products plans to raise up to 500 cr via secure NCD


JM Financial Products Limited, NBFC arm of JM Financial Group, declared on Friday Tranche – I public issue of secured NCDs with a par value of ??1,000 each.

The issue includes a base issue size of up to ??100 crore with an option to keep the oversubscription up to ??400 crore totaling up to ??500 crore, which is within the storage limit of ??1,500 crores. It will remain open from September 23 to October 14.

The Tranche I issue offers 4 series – Series I comes with a variable interest rate option with a term of 39 months. Series I carries a variable interest rate based on the 3-month Treasury bill rate published by Financial Benchmarks India Pvt. Ltd. (“FBIL”) plus a variance of 3.15%. The coupon for Series I NCDs will depend on how the Treasury bill rate changes, according to a company statement.

In addition, Series II, III and IV come with a fixed interest rate option with terms of 60 months (annually), 60 months (monthly) and 100 months (annually), respectively. The effective annual yield of Series II, III and III CRS (fixed interest rate) ranges from 8.19% to 8.30% per annum. The Tranche I issue offers subscription options with coupon rates ranging from 7.91% to 8.30% per year for NCDs of series II, III and IV (fixed interest rate), a-t- he adds.

The issue of Tranche I is rated AA / (STABLE) by the ICRA and AA / STABLE by CRISIL, the company said.

Vishal Kampani, Managing Director of JM Financial Products Limited, said: “JM Financial Products has strengthened its position across all lines of business with a diversified product line while maintaining the focus on risk-adjusted profitable growth. “

“The Company has maintained strong liquidity buffers. This public offering will continue to help us diversify our debt and investor portfolio. Our strong balance sheet, well-capitalized and diversified business, and strategic, client-centric approach position us to generate lasting value for our stakeholders. “

The funds raised through this Tranche I issue will be used for lending, financing and early repayment / repayment of interest and principal of the Company’s borrowings (at least 75%) and for general corporate purposes. business (up to 25%).

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