Public Issue of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures
FinTech BizNews Service
Mumbai, May 24, 2024: 360 ONE Prime Limited (formerly known as IIFL Wealth Prime Limited), a wholly-owned subsidiary of 360 ONE WAM Limited (formerly known as IIFL Wealth Management Limited), operating as a lending vehicle of the 360 ONE group, has announced the launch of its Tranche II public issue of secured, rated, listed, redeemable, non-convertible debentures (“NCDs”). The Tranche II Issue has a Base Issue Size of Rs 100 crores, with an option to retain over-subscription of up to Rs400 crores, aggregating to Rs500 crores. The company shall maintain a minimum-security cover of at least 1.05 times (1.05x) of the outstanding principal amounts of the NCDs and all interest due and payable thereon at all times until the date of redemption of NCDs.
NCDs proposed to be issued under Tranche II Issue are rated CRISIL AA/Stable by CRISIL Ratings Limited and [ICRA]AA (Stable) by ICRA Limited, which indicates that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry low to moderate credit risk.
The company proposes to raise funds for the purpose of onward lending, financing / refinancing the existing indebtedness of the Company, and/or debt servicing (payment of interest and/or repayment / prepayment of interest and principal of existing borrowings of the Company) and General Corporate Purposes.
The NCDs are available in tenors of 18 months, 24 months, 36 months, 60 months, and 120 months with monthly and annual interest payment options across ten series. The Company shall allocate and allot Series VI NCDs (36 months Annual Interest Payment option) wherein the Applicants have not indicated the choice of the relevant NCD Series.
Commenting on the NCD issue, Karan Bhagat, Founder, MD & CEO, 360 ONE said, “Following the success of the inaugural Tranche I Issue, we are pleased to introduce the second tranche of our NCD issuance. Our loan approval and administration procedures as well as collection and enforcement procedures are designed to minimise delinquencies and maximise recoveries. Further, our processes have been standardised with the objective of providing high levels of service quality while maintaining processes. The solutions offered by our Company are customised as per the clients' requirements and credit profile.”
Himanshu Jain, CEO and Whole-time Director, 360 ONE Prime Limited said, “As we launch the second tranche, our synergistic partnership with the 360 ONE Group remains a cornerstone of our strategy, enabling us to deliver best-in-class financial solutions. Adopting best practices from the 360 ONE Group has improved our underwriting capabilities, which is reflected in our healthy asset quality over the years. Our integrated technology platform continues to support efficient operations and informed decision-making throughout the loan lifecycle. With stable credit ratings from CRISIL and ICRA, we are well-positioned to secure funds at competitive rates, further solidifying our financial foundation.”
The lead managers of the issue are Trust Investment Advisors Private Limited, A.K. Capital Services Limited, and IIFL Securities Ltd.# The NCDs are proposed to be listed on BSE Limited, which has been appointed as the Designated Stock Exchange for the Issue.
#IIFL Securities Limited is deemed to be an associate of the Issuer as per the Securities and Exchange Board of India (Merchant Bankers) Regulations,1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, IIFL Securities Limited would be involved only in marketing of the Issue and, as per Regulation 25 (3) of SEBI NCS Regulations, shall not issue a due diligence certificate.
The public issue of NCDs opens on Friday, 24th May 2024 and closes on Thursday, 6th June 2024, with an option of early closure or extension in compliance with the Securities and Exchange Board of India Issue and listing of (Non-Convertible Securities) Regulations 2021, as amended (“SEBI NCS Regulations”).
Specific terms for NCD Holders of All Categories
Series | I | II | III | IV | V | VI* | VII | VIII | IX | X | ||||||||||||||
Frequency of Interest Payment | Monthly | Annual | Monthly | Annual | Monthly | Annual | Monthly | Annual | Monthly | Annual | ||||||||||||||
Minimum Application | ₹ 10,000 (10 NCDs) across all series | |||||||||||||||||||||||
In Multiples of thereafter | ₹ 1,000 (1 NCD) | |||||||||||||||||||||||
Face Value/ Issue Price of NCDs (₹/ NCD) | ₹ 1,000 per NCD | |||||||||||||||||||||||
Tenor | 18 Months | 18 Months | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 60 Months | 120 Months | 120 Months | ||||||||||||||
Coupon (% per annum) for NCD Holders in all Categories | 8.86% | 9.16% | 8.98% | 9.35% | 9.16 | 9.55% | 9.21% | 9.60% | 9.44% | 9.85% | ||||||||||||||
Effective Yield (% per annum) for NCD Holders in all Categories | 9.22% | 9.23% | 9.36% | 9.35 % | 9.55% | 9.55% | 9.60% | 9.60% | 9.86% | 9.84% | ||||||||||||||
Mode of Interest Payment | Through various modes available | |||||||||||||||||||||||
Redemption Amount (₹ / NCD) on Maturity for NCD Holders in all Categories | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 | ||||||||||||||
Maturity/Redemption Date (from the Deemed Date of Allotment) | 18 Months | 18 Months | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 60 Months | 120 Months | 120 Months | ||||||||||||||
Nature of Indebtedness | Secured | |||||||||||||||||||||||
Put and Call Option | Not Applicable | |||||||||||||||||||||||
Allocation Ratio | Category I Institutional 25% | Category II – Non-Institutional 25% | Category III – HNI 25% | Category IV – Retail 25% | ||||||||||||||||||||
*The Company shall allocate and allot Series VI NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series
