India Infoline Finance Limited, an NBFC, proposes a Public Issue of Un-Secured Redeemable Non-Convertible Debentures of face value of Rs. 1,000 each (“NCDs”) aggregating up to Rs. 2,500 mn (“Base Issue Size”), with an option to retain oversubscription up to Rs. 2,500 mn, aggregating to a total of Rs. 5,000 mn (the “Over all Issue Size”). The NCDs will be in the nature of subordinated debt and will be eligible for Tier-II capital.
The NCD issue has 3 investment options and the yield on redemption is 13.52%, 12.75% and 12.75% (per annum) for Option I, II and III respectively. The issue will open on 5 September, 2012 and closes on 18 September, 2012.
The NCDs proposed to be issued have been rated ‘[ICRA] AA – (stable)’ by ICRA for an amount of upto Rs. 5,000 mn and ‘CRISIL AA – Stable’ by CRISIL for an amount of upto Rs. 5,000 mn. The rating of the NCDs by ICRA indicates a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risks. The rating of NCDs by CRISIL indicates that instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations carrying very low credit risk.
The NCDs are proposed to be listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).
There are three investment options:
Option I (Monthly interest payment): The redemption date is 72 months from the deemed date of allotment and the coupon rate is 12.75% p.a. The interest payment frequency is monthly and the face value plus any interest that may have accrued is payable on redemption. The effective yield on this option is 13.52% per annum.
Option II (Annual interest payment): The redemption date is 72 months from the deemed date of allotment and the coupon rate is 12.75% p.a. The interest payment frequency is annual and the face value plus any interest that may have accrued is payable on redemption. The effective yield on this option is 12.75% per annum.
Option III (Redemption premium): NCDs will be redeemed at Rs 2,054.50 at the end of 72 months from the deemed date of allotment. The effective yield on this option is 12.75% per annum.
The lead managers to the proposed public issue of NCDs are Axis Bank Limited, SBI Capital Markets Limited, Edelweiss Financial Services Limited, Trust Investment Advisors Private Limited and India Infoline Limited (only for marketing of the Issue), while the Co-lead managers to the Issue are RR Investors Capital Services (P) Limited and Karvy Investor Services Limited.