Money & Banking

MAS Financial raises ₹100 crore via market-linked NCDs

Our Bureau Ahmedabad | Updated on June 25, 2021

The debt instruments have a face value of ₹1,00,000 each

Ahmedabad-based NBFC MAS Financial Services informed that the company has raised ₹100 crore via market-linked non-convertible debentures.

At its meeting held in June 23, 2021, the finance committee of the board of directors of the company, approved and allotted 10,000 rated, senior, secured, listed, transferable, redeemable, principal protected market-linked NCDs on a private placement basis.

Also read: RBI links NBFC dividend payout to capital, NPA norms

The market-linked NCDs have a face value of ₹1,00,000 each aggregating up to ₹100 crore.

The allotment of 10,000 market-linked NCDs, was inclusive of a green shoe option comprising 5000 market-linked NCDs which was activated to retain over-subscription, the company informed.

The debentures are rated ‘CARE PP-MLD A+; Stable’ by CARE Ratings.

The market-linked NCDs will be listed on the wholesale debt market segment of the BSE with a tenure of 30 months from the date of allotment.

Coupon rates

The structuring of these market-linked NCDs will offer a coupon rate as follows.

(a) 8.50% if the reference index performance is greater than 75%, and/or (b) 8.45% if the reference index performance is equal to or less than 75% but greater than 25%, and/or (c) 0% if the reference index performance is lesser than or equal to 25%.

The reference index performance refers to the performance of the reference index i.e. 5.85% GS 2030 on the final fixing date in comparison to the initial fixing date.

The debentures shall be fully redeemed on a ‘pari-passu’ basis on the redemption date, which is December 23, 2023 by making the redemption payment, the company informed.

On Friday, MAS Financial Services shares traded at ₹868, marginally up by 0.14% over the previous close on the BSE.

Published on June 25, 2021

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