JM Financial Products, the NBFC arm of the JM Financial Group on Friday announced 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 over subscription up to ₹400 crore, which would in all total up to ₹500 crore.

“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 per cent) and for general corporate purposes (up to 25 per cent),” JM Financial said in a statement..

Tranche - I Issue will open on September 23, 2021 and close on October 14, 2021.

The issue offers four Series, of which Series I comes with floating interest rate option and Series II, III and IV comes with fixed interest rate option.

The fixed coupon rate is of up to 8.3 per cent per annum and the floating interest rate will be calculated based on 91-day T-bill and 3.15 per cent spread.

The tenor will range from 39 months to 100 months. “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,” said Vishal Kampani, Managing Director, JM Financial Products and Managing Director, JM Financial Group.

The lead managers to the issue are Equirus Capital and JM Financial.

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