JM Financial Credit Solutions Limited NCD Issue to Open on May 28

By 121 News

Chandigarh 22^nd May:-  JM Financial Credit Solutions Limited (the "Company"), the NBFC arm of the JM Financial Group providing integrated financial solutions to real estate developers, proposes to open on May 28, 2018, a public issue of secured, rated, listed redeemable, Non-Convertible Debentures of face value of Rs. 1,000 each ("Secured NCDs") with a Base Issue size of Rs. 300 crore with an option to retain oversubscription up to Rs. 450 crore aggregating up to Rs. 750 crore ("Tranche I Issue"), which is within the Shelf Limit of Rs. 2,000 crore. 

The Issue is scheduled to close on June 20, 2018 with an option of early closure or extension as decided by the Board of Directors of the Company ("Board") or the NCD Public Issue Committee.

Ratings by ICRA & India Ratings indicate 'High degree of safety'

The Secured NCDs proposed to be issued under the Tranche I Issue have been rated [ICRA] AA/Stable by ICRA for an amount of up to Rs. 2,000 crore vide its letter dated April 27, 2018 and further reaffirmed by letter dated May 11, 2018, and have been rated IND AA/Stable by India Ratings for an amount Rs. 2,000 crore vide its letter dated April 27, 2018 which has been superseded by letter dated May 10, 2018. The rating of the Secured NCDs by ICRA and India Ratings indicates high degree of safety regarding timely servicing of financial obligations.

Shashwat Belapurkar, CEO, JM Financial Credit Solutions Limited, said that JM Financial Credit Solutions Ltd.'s Public Issue of NCDs has the distinction of being the first from JM Financial group, an established financial services group with a recognized and trusted brand. Our Company has a track record of stable and sustainable financial performance reflected in our consistent growth in revenues and profitability coupled with a conservative debt equity ratio and strong asset quality. Our total revenue increased at a CAGR of 109.9% from Fiscal 2015 to Fiscal 2018 and our profit after tax increased at a CAGR of 88.8% from Fiscal 2015 to Fiscal 2018. Our NCD Issue is a significant step to optimize funding costs and maintain a diverse funding portfolio that will enable us to achieve funding stability and liquidity in a fast growing market full of opportunities.

CRISIL Research anticipates wholesale financing by NBFCs to grow at 23% to 26% CAGR over the next two years to 2.0 trillion by Fiscal 2019. Over the next five years, CRISIL expects NBFCs assets to grow by 20% to 25% CAGR from Fiscal 2017 to Fiscal 2022 due to increasing need for funds post implementation of Real Estate (Regulation and Development) Act, 2016 ("RERA").

The minimum application amount is Rs.10,000 collectively across all options on NCDs and in multiples of One (1) NCD of face value of Rs. 1000 each after the minimum application. Allotment is on a first-come-first-serve basis (except on the date of oversubscription, if any, when all the investors applying on the said date will get allotment on a proportionate basis). Investors have to apply for NCDs only in dematerialized form.