India Infoline Housing Finance Ltd (IIHFL), a wholly owned subsidiary of India Infoline Finance Ltd, plans to raise up to ₹200 crore through a public issue of non-convertible debentures (NCDs). The bond will have a maturity period of six years. The NCDs, which are unsecured and redeemable, will have face value of ₹1,000 each and a coupon of 12 per cent. The minimum subscription amount has been pegged at ₹10,000.
Investors will have two investment options — first, that offers interest payment at monthly frequency (in this case the annualised effective yield will work out to 12.68 per cent) and the second, a cumulative option (with an annualised effective yield of 12.25 per cent). The NCD issue will open for subscription on March 12 and close on March 24.
According to the prospectus of the NCD issue, the funds raised will help boost tier-II capital and capital adequacy of the company, which as at September-end 2013 stood at 49.49 per cent. It shall also be used to finance activities including lending and investments.
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