IIFL's NCD issue will pave way for fresh Rs 2,000 crore debt
India Infoline Finance Ltd Thursday said its Rs 500-crore unsecured Non-Convertible Debenture (NCD) issue will allow the NBFC to raise another Rs 2,000 crore debt comfortably from banks to fuel its growth plans.
Kolkata: India Infoline Finance Ltd Thursday said its Rs 500-crore unsecured Non-Convertible Debenture (NCD) issue will allow the NBFC to raise another Rs 2,000 crore debt comfortably from banks to fuel its growth plans.
"The Rs 500-crore NCD are in nature of subordinate debt and thus eligible for tier II capital. This will allow us to raise up to five times the amount as debt from banks," Indian Infoline Finance president Mukesh Kumar Singh said here Thursday.
"Hence, we will be easily able to raise Rs 2,000 crore debt from banks as and when the company requires resources," he said.
The NCDs do not have any put and call option. The issue would open for subscription on September 5 and close on September 18.
NCDs would have a face value of Rs 1,000 each with the base issue aggregating Rs 250 crore and the company having the option to retain oversubscription up to a further Rs 250 crore giving a total of Rs 500 crore.
There are three investment options with a redemption date of 72 months; monthly interest payment option with effective annual yield of 13.52 percent, annual interest payment option with an effective annual yield of 12.75 percent, Singh said.
The NBFC is looking forward to a growth of 25-30 percent growth in disbursement during the current fiscal, he added.
In 2011-12, the company had disbursed Rs 3,500 crore. The cumulative asset portfolio stood at Rs 6,700 crore, Singh said.
Mortgage loan accounted for 44 percent, gold loan 41 percent and capital market financing share stood at 11 percent of the total loan portfolio.