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IFMR Capital has facilitated a ₹50-crore debt for Jaipur-based NBFC Ess Kay Fincorp Pvt Ltd through two single issue partially credit enhanced bond, also known as SPiCE bond, transactions. SPiCE bond is a unique product structure introduced for the first time in the corporate sector, according to IFMR Capital.
Sundaram Asset Management Co and Principal PNB Asset Management Co have subscribed to the debentures. The tenure of both issuances, rated A(SO), is 24 months. The uniqueness of this structure is in the unconditional and irrevocable partial guarantee of 24 per cent provided by IFMR Capital and an additional security cover pool.
The guarantee and the cover pool reduce risks for investors and provides credit enhancement for the issuance. Ess Kay has been one of the beneficiaries of IFMR Capital’s product structuring in the last one year. In August, it raised ₹25 crore through market and credit linked debenture.
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