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JM Financial Products Limited, NBFC arm of the JM Financial Group, on Friday said Tranche – I public issue of secured NCDs of face value of 1,000 each.

The issue includes a base issue size of up to 100 crore with an option to retain oversubscription up to 400 crore aggregating up to 500 crore, which is within the shelf limit of 1,500 crore. It will remain open between 23 September to 14 October. 

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% spread. The Coupon for Series I NCDs will depend on the movement of the T-bill rate, a company release said.  

In addition, Series II, III and IV comes with fixed interest rate option in the tenor 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% to 8.30% per annum. The Tranche I Issue offers options for subscription with coupon rates ranging from 7.91% to 8.30% per annum for Series II, III and IV NCDs (fixed interest rate), it added. 

Tranche I issue is rated as AA/(STABLE) by ICRA and AA/STABLE by CRISIL, the company said. 

Vishal Kampani, Managing Director, JM Financial Products Limited, said, “JM Financial Products has fortified its position across business verticals with a diversified product mix while maintaining a focus on risk adjusted profitable growth."

“The Company has maintained strong liquidity buffers. This public issuance will continue to help us diversify our borrowing and investor mix. Our strong balance sheet, well-capitalised and diverse set of businesses and strategic client-focused approach position us to drive sustainable value for our stakeholders."

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

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