SREI Equipment Finance NCD Jan-2017 offers 9.7%

 

SREI Equipment Finance NCD Jan-2017 offers 9.7%

After about 2 years SREI Equipment finance is coming up with secured NCD’s which offers 9.77% yield.

SREI Equipment Finance is one of the leading non-banking financing companies in the organized equipment financing sector in India with a principal focus on financing infrastructure equipment.

 About SREI EFL’s Jan 2017 NCD Issue;

NCD Issue opening Date : 3rd January, 2017

Issue Closes on : 20th January, 2017.

Interest Rate or Coupon Rate on NCDs : The ROI ranges from 8.6% to 9.75% depending on the category of investor and tenure of the NCDs.

Issue Size: Base Issue size is Rs 250 cr (with an Option to retain over-subscription amount up to Rs 500 Crores )

Mode of Issue : Physical & Demat forms, subject to certain conditions.

Face Value or Issue Price of one NCD is Rs 1,000.

Available Tenor options : 400 days, 3 years & 5 Years.

Frequency of Interest payment : Monthly, Annual & Cumulative (on maturity date of NCDs).

Minimum Application size : Rs 10,000 (10 NCDs) and in multiple of Rs 1,000 thereafter.

Listing : The NCDs are proposed to be listed on BSE & NSE stock exchanges.

Security & Asset Cover : The Company and Promoter will create and maintain appropriate security in favour of the Debenture Trustee for the NCD Holders on the assets adequate to ensure required asset cover for the Secured NCDs.

Credit Ratings : BWR AA+ – Outlook Stable by Brickwork Ratings & SMERA AA/Stable’ by SMERA Ratings Ltd.

Issue Allocation Ratio : 50% of the issue is for retail & HNI individual investors  (HNIs – individuals (applying for an amount of > Rs 10 lakh).

There are no PUT & Call options for these Secured NCDs. (What are Put & Call options? – NCDs can have Put or Call options. If a company issues a ‘Callable Debenture’, it means that it can be redeemed by the Issuer (company) before the bond’s maturity.

 A debenture with a ‘Put option’ works in exactly the opposite manner, wherein the investor can sell the bond to the issuer at a specified price before its maturity.)

Allotment of NCDs is on ‘first come, first served’ basis.

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