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The non-banking finance (NBFC) arm of JM Fin Group, JM Financial Credit Solutions (JMFL), has announced that the company is planning to raise up to Rs 1,250 crores, by the means of retail bond sale, prompting that investors are likely to regain confidence in the NBFC sector.
JM Financial Credit Solutions CEO, Shashwat Belapurkar said, “We plan to use the proceeds both for expanding loans and debt repayments besides general corporate purposes.” He added, “We aim to reduce our share of short-term borrowing by the end of this year.” The company plans to focus on technology to manage and expand its business.
According to the company’s statement, the rates will be offered in the range of 9.67% and 10.25% across maturities. Also, there are a set of three maturities available, including three and a half-year, five-year, and 10-year. The bond sale will open for subscription on November 20.
The company which lends to real estate builders has marked Rs 250 crore as the base size of the issue while the rest could be mopped up through oversubscription. Edelweiss Fin combined with few others are helping the company to sell the bonds. Rating companies such as India Ratings and ICRA have rated the issuance as AA grade with a stable outlook.
