The NCD is offering an effective yield of 9.9% for a term of five years.
Government owned Industrial Finance Corporation of India Ltd (IFCI) is coming out with its first tranche of Rs. 250 crore NCD with an option to retain oversubscription of Rs. 2,000 crore. The issue opens for subscription on October 20 and closes on November 21.
The company is offering an effective yield ranging from 9.8% p.a. to 10% p.a. depending on the category of investors and series of NCDs applied for.
About IFCI: Incorporated in May 1993, IFCI is a Government of India controlled company registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit taking NBFC (NBFC-NDSI). IFCI provides financial services which include, besides long term corporate loans, advisory services in the areas of project development, project appraisal, strategic analysis, corporate restructuring, infrastructure financing and legal advisory to various sectors.
Effective yield and maturity
Tentative brokerage structure: Sub brokers can expect commission of up to 1% which depends on the issue term and number of applications.
Lead managers: SBI Capital Markets, A K Capital Services, Edelweiss Financial Services, RR Investors Capital Services
Listing: BSE & NSE
Minimum application: 10 NCDs (Rs. 10,000) and in the multiple of one NCD thereafter
Rating: BWR AA- (Outlook: Stable)” by Brickwork Ratings and “[ICRA] A (Stable)” by ICRA
Who can sell the product: Registered stock brokers with any stock exchange along with their respective sub-brokers, banks and intermediaries selected by the issuing company.
How can an IFA get registered to sell the product: An IFA has to sign the sub-broker agreement with a stock broker to be eligible to sell these NCDs.
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