CreditAccess Grameen Limited NCD: A Comprehensive Guide to Key Details

24 Aug 2023 , 12:39 PM

CreditAccess Grameen Limited is a leading Indian micro-finance institution headquartered in Bengaluru. According to MFIN India, The company was the largest NBFC- MFI in India regarding the gross loan portfolio as of March 2023. It is coming up with a debt offer which is starting for subscription from August 24 to September 6. Click here to apply in the CreditAccess Grameen Limited NCD. 

The company is raising Rs 1000 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The company has received rating of IND AA-/Stable by India Ratings & Research Private Limited.

CreditAccess Grameen Limited has reserved 25% quota for institutional investors and retail investors, 30% for non-institutional investors and 20% for high net-worth.

The company will use the net proceeds from the issue towards onward lending, financing, and repayment of interest and principal of existing borrowings and other general corporate purposes.

These NCDs have tenures of 24 months, 33 months and 60 months. It offers coupon rates from 9.10% to 9.70% based on the selection of investors. The frequency of interest payments will be Annual or Cumulative as per the choice of investors. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of CreditAccess Grameen Tranche II NCD 2023

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7	Series 8
Frequency of Interest Payment	Monthly	Cumulative	Monthly	Cumulative	Monthly	Cumulative	Monthly	Cumulative
Nature	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured
Tenor	24 Months	24 Months	33 Months	33 Months	50 Months	50 Months	60 Months	60 Months
Coupon (% per Annum)	9.10%	NA	9.25%	NA	9.40%	NA	9.70%	NA
Effective Yield (% per Annum)	9.48%	9.48%	9.64%	9.64%	9.81%	9.81%	10.13%	10.13%
Amount on Maturity (In Rs.)	Rs 1,000.00	Rs 1,198.82	Rs 1,000.00	Rs 1,288.12	Rs 1,000.00	Rs 1,477.11	Rs 1,000.00	Rs 1,621.19

 

RHP:

https://www.creditaccessgrameen.in/wp-content/uploads/2023/08/CreditAccess-Grameen_Tranche-II-Prospectus_18-August_2023-signed.pdf

Tax implications:

• Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
• As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a longterm capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
• As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
• In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
• Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

CreditAccess Grameen Tranche II NCD is managed by AK Capital Services Limited. Kfin Technologies Limited is the registrar of NCD and Catalyst Trusteeship Limited is debenture trustee to the same.