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Thursday , 13 December 2018
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IFCI Limited to raise upto Rs. 790.813 crore through Public issue of Secured, Redeemable, Non-convertible Debentures

Tranche II Issue has opened for subscription on January 1, 2015 and is scheduled to close on February 4, 2015 with an option for early closure or extension by such period, as may be decided by the Board of Directors of the Company or the Board Committee subject to necessary approval. In the event of such early closure or extension of period of the Tranche II Issue, the Company shall ensure that public notice of such early closure or extension is published on or before such early date of closure or the Issue Closing Date, as applicable, through advertisement(s) in at least one leading national newspaper with wide circulation.

 New Delhi, January 05, 2015: IFCI Limited (“Company” or “IFCI”), a company promoted and controlled by Government of Indiais, subject to market conditions and other considerations, proposing a public issue of secured redeemable non-convertible debentures (“NCDs”) of face value of Rs. 1,000 each amounting to Rs. 250.00 crore (“Base Issue Size”) with an option to retain oversubscription aggregating upto the Residual Shelf Limit i.e. Rs790.813crore.

 The NCDs are rated “BWR AA- (Outlook: Stable)” by Brickwork Rating India Private Limited. Instruments with this rating are considered to have the high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.  The NCDS are rated “[ICRA]A (Stable)” by ICRA Limited. Instruments with this rating are considered to have the adequate degree of safety regarding timely servicing of financial obligations. The NCDs are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). The designated Stock Exchange for the Issue is BSE.

 SBI Capital Markets Limited, A.K. Capital Services Limited, Edelweiss Financial Services Limited and RR Investors Capital Services Private Limited are the Lead Managers to the issue. Axis Trustee Services Limited has pursuant to regulation 4(4) of SEBI Debt Regulations given its consent for its appointment as Debenture Trustee to the Issue and Karvy Computershare Private Limited is the Registrar to the Issue. Dhir&Dhir Associates is the Legal Counsel to the Issue.

 The NCDs are being offered for two tenors – 5 years and 10 years and both the tenors have an option of annual coupon or premium on redemption. The NCDs with a tenure of 5 years, having annual coupon payout option, will have a coupon rate of 9.35% p.a. for all categories of Investors i.e Category I Investor i.e. Qualified Institutional Buyers (“QIB”), Category II Investor i.e. Corporates, Category III Investor i.e. High Networth Individuals (“HNIs”) and Category IV Investor i.e. Retail Individual Investors (“RII”). There is an additional incentive of 0.10% p.a over coupon rate applicable only for HNIs and RII. Thus, the aggregate of coupon rate and additional incentive for HNIs and RII is 9.45% p.a.

 The NCDs with tenure of 10 years having annual coupon payout option, and will have a coupon rate of 9.40% p.a for all categories of Investors i.e QIB, Corporates, HNIs and RII. There is an additional incentive of 0.10% p.a over coupon rate applicable only for HNIs and RII. Thus, the aggregate of coupon rate and additional incentive for HNIs and RII is 9.50% p.a.

 The Company is also offering NCDs with premium on redemption option for both the tenors i.e. 5 years and 10 years. The NCDs of face value of Rs. 1,000 with a tenure of 5 years will be redeemed on the Maturity Date at Rs. 1,563.87(for QIBs and Corporates) and Rs. 1,571.04 ( for HNIs and RII). The NCDs of face value of Rs. 1,000 with tenure of 10 years will be redeemed on the Maturity Date at Rs. 2,457.50( for QIB and Corporates) and Rs. 2,480.08 ( for HNIs and RII).

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