Attractive interest rate of up to 10.25% per annum*; Effective yield per annum of atleast or above 10% for all Options/Series
*Options/Series V, 10 years – Annual option
^ Determined on the basis of application on electronic bidding platform of BSE Limited (BSE).
Mumbai, November 14, 2018: JM Financial Credit Solutions Limited (the “Company”), the NBFC arm of the JM Financial Group providing integrated financial solutions to real estate developers, proposes to open on November 20, 2018, a public issue of secured, rated, listed, redeemable, Non-Convertible Debentures of face value of Rs. 1,000 each (“Secured NCDs”) with a Base Issue size of Rs. 2,500 million with an option to retain oversubscription up to Rs. 10,000 million, aggregating upto Rs. 12,500 million (“Tranche II Issue”), which is within the Shelf Limit of Rs. 20,000 million. In Tranche 1, the Company had raised Rs. 7,500 million in the month of June 2018.
The Issue is scheduled to close on December 20, 2018 with an option of early closure or extension as decided by the Board of Directors of the Company (“Board”) or the NCD Public Issue Committee constituted by the Board of Directors.
Ratings by ICRA & India Ratings indicate ‘High degree of safety’ regarding timely servicing of financial obligations
The Secured NCDs have been rated [ICRA] AA/Stable by ICRA for an amount of up to Rs. 20,000 million vide its letter dated April 27, 2018 and further revalidated on November 1, 2018, and have been rated IND AA/Stable by India Ratings for an amount up to Rs. 20,000 million vide its letter dated April 27, 2018 which has been revalidated on November 1, 2018. The rating of the Secured NCDs by ICRA and India Ratings indicates high degree of safety regarding timely servicing of financial obligations.
Mr. Shashwat Belapurkar, CEO, JM Financial Credit Solutions Limited, said, “JM Financial Credit Solutions Ltd. is a real estate NBFC, with a successful track record which has been delivering stable and sustainable financial performance over the years coupled with a conservative debt equity ratio and strong asset quality. With our strong client base and a superior franchise model, we expect the growth momentum to continue going forward. We are overwhelmed with the response received for our first maiden issue earlier this year and are offering an additional interest incentive of 15 basis points per annum for 5 years & 10 years tenure to the eligible investors. Also, the effective yield for Tranche II secured NCDs is at least or above 10% across various Options/Series ranging from 42 months to 120 months.
Issue Structure:
In Option 1, interest will be paid on an annual basis at a rate of 10.00% p.a.; and the tenor is 42 months. The Effective Yield (per annum) is 10.02%.
In Option II, interest will be paid on a cumulative basis and the tenor is 42 months. The redemption amount per NCD is Rs. 1,396.15. The Effective Yield (per annum) is 10.00%.
In Option III, interest will be paid on an annual basis at a rate of 10.10% p.a. and the tenor is 60 months. The Effective Yield (per annum) is 10.09%.
In Option IV, interest will be paid on a monthly basis at a rate of 9.67% p.a. and the tenor is 60 months. The Effective Yield (per annum) is 10.10%.
In Option V, interest will be paid on an annual basis at a rate of 10.25% p.a. and the tenor is 120 months. The Effective Yield (per annum) is 10.24%.
In Option VI, interest will be paid on a monthly basis at a rate of 9.81% p.a. and the tenor is 120 months. The Effective Yield (per annum) is 10.25%.
[Category IV Investors (Retail Individual Investors) are defined as Resident Indian individuals and HUFs through the Karta applying for an amount aggregating for an amount up to and including Rs. 10 lakh, across all Options/Series of Secured NCDs. Category III Investors (High Net-worth Individuals or HNIs) Investors are Resident Indian individuals and HUFs through the Karta applying for an amount above Rs. 10 lakh, across all Options/Series of Secured NCDs].
The minimum application amount is Rs.10,000 collectively across all Options/Series on NCDs and in multiples of One (1) NCD of face value of Rs. 1000 each after the minimum application. Allotment is on a first-come-first-serve basis (on the date of oversubscription the allotments will be made to the applicants on a proportionate basis). Investors have to apply for NCDs only in dematerialized form.
The Secured NCDs offered through the Shelf Prospectus dated May 16, 2018 and the Tranche II Prospectus dated November 12, 2018 are proposed to be listed on BSE Limited (“BSE”). BSE will be the designated stock exchange.
The Lead Managers to the Issue are A. K. Capital Services Ltd., JM Financial Limited, Edelweiss Financial Services Limited and Trust Investment Advisors Private Limited.
In compliance with the proviso to Regulation 21A(1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with proviso to Regulation 5(3) of the SEBI ICDR Regulations, JM Financial Limited will be responsible only in marketing of the Issue.
About JM Financial Credit Solutions Limited
The Company is a Systemically Important Non–Deposit taking Non–Banking Financial Company (“NBFC ND – SI”) forming part of the JM Financial group. It is a wholesale finance NBFC and provides integrated financial solutions to real estate developers with a focus on residential project financing such as funding real estate developers at various stages in the life cycle of a real estate project. It commenced lending to real estate developers in 2014 and its clients are located in Mumbai, Pune, Bengaluru, Chennai, Hyderabad, NCR and Kolkata. For the Fiscal 2018, its loan book stood at ₹ 73,388.8 million as compared to ₹ 56,581.5 million as of Fiscal 2017. It provides secured and unsecured lending to the real estate developers. Its product portfolio consists of Project finance; Loans against property; Loans against shares; Project at early stage loans; and Loans against land.
Disclaimer
JM Financial Credit Solutions Limited, subject to market conditions and other considerations, is proposing a public issue of secured, rated, listed, redeemable non-convertible debentures of face value of Rs. 1000/- each (“Tranche II Issue”) and has filed the Shelf Prospectus dated May 16, 2018 and Tranche II Prospectus dated November 12, 2018 with the Registrar of Companies, Maharashtra, Mumbai, BSE Limited and SEBI. The Shelf Prospectus dated May 16, 2018 and Tranche II Prospectus dated November 12, 2018 are available on our website at www.jmfinancialcreditsolutions.com, on the website of the stock exchange at www.bseindia.com and the respective websites of the lead managers at www.akgroup.co.in, www.jmfl.com, www.edelweissfin.com and www.trustgroup.in. Investors proposing to participate in the Tranche II Issue should invest only on the basis of information contained in the Shelf Prospectus dated May 16, 2018 and Tranche II Prospectus dated November 12, 2018. Investors should note that investment in Secured NCDs involves a high degree of risk and for details relating to the same, please refer to the Shelf Prospectus dated May 16, 2018 and Tranche II Prospectus dated November 12, 2018, including the section 'Risk Factors' beginning on page 13 of the Shelf Prospectus dated May 16, 2018 and section titled "Material Developments" on Page 26 of the Tranche II Prospectus dated November 12, 2018.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer Clause of the BSE.
DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by BSE to use their network and software of the Online system should not in any way be deemed or construed that the compliance with various statutory requirements approved by the Exchange; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements nor does it take any responsibility for the financial or other soundness of the Company, its promoters, its management or any scheme or project of the Company.
Notes to the Editor
About JM Financial
JM Financial is an integrated financial services group offering a wide range of capital market services to its corporate and individual clients. The Group’s businesses include investment banking, wealth management and securities business; mortgage lending; distressed credit and asset management business (mutual fund). For more information, log on to www.jmfl.com or contact:
Ms. Manali Pilankar, Corporate Communications
Tel.: +91 22 6630 3475
Email: manali.pilankar@jmfl.com
Adfactors PR: Ms. Purvi Shah (Mobile: 09833431331, 09820531932)