JM Financial Credit Solutions, the NBFC arm of the JM Financial Group, will be raising up to ₹750 crore by issuing non-convertible debentures (NCDs) next week.
The NCD issue will open on May 28 with a base issue size of ₹300 crore with an option to retain oversubscription up to ₹450 crore, aggregating up to ₹750 crore (tranche I issue), according to a statement.
Six options
The issue will close on June 20 with an option of early closure or extension as decided by the company’s board or the NCD public issue committee.
Available in six options, the bond will carry tenors ranging from 38 months to 120 months. Retail investors can look for higher returns as the public issue offers attractive interest rate in the range of 9.11-9.75 per cent.
“We expect good retail investor participation in this issue,” said Gitanjali Mirchandani, Executive Director and Head — Origination, JM Financial Credit Solutions.
About 75 per cent of the net proceeds of the bond issue will be used for the purpose of onward lending, financing and for repayment/prepayment of interest and principal of existing borrowings of the company.
A maximum of up to 25 percent will be used for general corporate purposes, the company said.
As of March 31, the company, which has been focusing on real estate project financing, had a lending book size of about ₹7,339 crore.