Comments
IFMR Capital, a Chennai-based non-banking finance company, has closed a Market and Credit Linked Debenture (MCLD) for a BBB-rated company, in which a leading mutual fund, through its alternative investment fund, subscribed to ₹25 crore of debentures.
IFMR Capital plans to structure more MCLD deals for its more than 120 micro-finance institutions and NBFC clients. One of India’s leading mutual funds has subscribed to the debentures issued by Jaipur-based Ess Kay Fincorp Pvt Ltd. Under the MCLD scheme, while the principal investment of the debenture holder is protected, the interest payment to be made at maturity is variable. The final payout is linked to the performance of the Nifty index over the tenure of the debenture.
This is the latest in a series of unique structured products launched for the financial inclusion sector. It incentivises the originator to improve credit rating and offers investors an opportunity to invest in the performance of the originator and the growth of the economy.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.