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JM Financial Products Limited, the flagship branch of NBFC of JM Financial Group, recently announced the Tranche – I public issue of secured NCDs with a face value of Rs 1,000 each.
The Tranche I issue offers 4 series – Series I comes with a variable interest rate option with a term of 39 months. Series I bears a floating interest rate based on the 3-month Treasury bill rate published by Financial Benchmarks India Pvt Ltd (FBIL) plus a spread of 3.15%. The coupon for Series I NCDs will depend on the performance of the Treasury bill rate.
In addition, Series II, III and IV come with a fixed interest rate option with a term 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 percent to 8.30 percent per annum for Series II, III and IV NCD (fixed interest rate).
Minimum application Rs 10,000 (10 MNT) in all series collectively. Put and buy option not applicable.
For Series for which interest is to be paid monthly, the relevant interest will be calculated from the first day to the last day of each month during the term of such CRS and paid on the first day of each subsequent month.
For the first interest payment for NTMs where interest is to be paid on a monthly basis, interest from the deemed date of grant until the last day of the following month will be clubbed and paid on the first day of the following month this next month. The last interest payment will be made when the CRS is redeemed.
The funds raised through this issue of Tranche I will be used for subsequent lending, financing, and for the repayment or early repayment of interest and principal of the company’s borrowings (at least 75 percent) and to general corporate purposes (up to 25 percent).
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