360 ONE Prime To Raise Up To Rs10 Bn Via Public Issue Of Secured, Redeemable, NCDs

Tranche I Issue opens on Thursday, January 11, 2024, and closes on Wednesday, January 24, 2024 with an option of Early Closure

Karan Bhagat, MD & CEO, 360 ONE Prime

FinTech BizNews Service

Mumbai, January 8, 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 maiden public issue of secured, rated, listed, redeemable, non-convertible debentures (“NCDs”). 360 ONE Prime will issue Tranche I of secured, rated, listed, redeemable, NCDs, with Base Issue Size of Rs.200 crores, with an option to retain over-subscription of up to ? 800 crores aggregating to ? 1,000 crores, which is within the Shelf Limit of ? 1,500 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 Maturity Date.

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 issued through the Tranche I Prospectus dated December 28, 2023 read with Shelf Prospectus dated December 28, 2023 offer a coupon of up to 9.66% per annum (under Series VIII). The NCDs are available in tenors of 18 months, 24 months, 36 months and 60 months with monthly and annual interest payment options across eight series.

NCDs proposed to be issued under Tranche I 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 very low credit risk.

Commenting on the NCD issue, Karan Bhagat, Founder, MD & CEO, 360 ONE said, “We have an experienced management team. Our loan approval and administration procedures, collection and enforcement procedures are designed to minimize delinquencies and maximize recoveries. Further, our processes have been standardized with the objective of providing high levels of service quality while maintaining process. The solutions offered by our Company are customized as per the clients' requirements and credit profile.”

Himanshu Jain, CEO and Whole-time Director, 360 ONE Prime Limited said, “Our Company has a synergistic partnership with the 360 ONE Group, which ensures that clients receive best-of-the-class financial solutions. We have also benefitted by adopting good practices of 360 ONE group, which has helped in enhancing our Company’s risk underwriting abilities, which is reflected in our healthy asset quality over the years. We have an integrated technology platform for providing operational and decision-making support through the complete loan lifecycle. Our Company has credit ratings from agencies including CRISIL, CARE and ICRA. We believe our credit rating allows us to borrow funds at competitive rates from diverse sources.”

The lead managers to the issue are JM Financial Limited, A. K. Capital Services Limited and IIFL Securities Limited#. The NCDs are proposed to be listed on BSE Limited. BSE Limited has been appointed as the Designated Stock Exchange.

# 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 NCDs would be issued at face value of Rs.1,000 each, aggregating up to Rs.1,000 crore. The public issue opens on Thursday, 11th January, 2024 and closes on Wednesday, 24th January, 2024, with an option of early closure or extension in compliance with Securities and Exchange Board of India Issue and listing of (Non-Convertible Securities) Regulations 2021, as amended (“SEBI NCS Regulations”). The allotment will be made on a first come first served basis.

Specific terms for NCD Holders of All Categories

* Company shall allocate and allot Series VI NCDs (36months –annual option) wherein the Applicants have not indicated the choice of the relevant NCD Series.