JM Financial Products Ltd announces a public issue of secured NCDs

JM Financial Products Limited, the flagship NBFC arm of JM Financial Group, has recently announced Tranche – I public issue of secured NCDs of face value of Rs 1,000 each. 

The Tranche I Issue offers 4 Series – Series I comes with floating interest rate option in the tenor of 39 months. Series I carries floating interest rate based on 3-month T-Bill rate published by the Financial Benchmarks India Pvt Ltd (FBIL) plus 3.15 per cent spread. The coupon for Series I NCDs will depend on the movement of the T-bill rate. 

In addition, Series II, III and IV comes with fixed interest rate option in the tenure of 60 months (annual), 60 months (monthly) and 100 months (annual), respectively. Effective annual yield for Series II, III and III NCDs (fixed interest rate) ranges from 8.19 per cent to 8.30 per cent per annum. The Tranche I Issue offers options for subscription with coupon rates ranging from 7.91 per cent to 8.30 per cent per annum for Series II, III and IV NCDs (fixed interest rate). 

Minimum application Rs 10,000 (10 NCDs) across all series collectively. Put and call option not applicable.

With respect to Series where interest is to be paid on a monthly basis, relevant interest will be calculated from the first day till the last date of every month during the tenure of such NCDs and paid on the first day of every subsequent month.

For the first interest payment for NCDs where interest is to be paid on a monthly basis, interest from the deemed date of allotment till the last day of the subsequent month will be clubbed and paid on the first day of the month next to that subsequent month. The last interest payment will be made at the time of redemption of the NCDs. 

The funds raised through this Tranche I issue will be used for the purpose of onward lending, financing, and for repayment or prepayment of interest and principal of the borrowings of the company (at least 75 per cent) and for general corporate purposes (up to 25 per cent).