BENGALURU: Navi Finserv Limited (NFS), a wholly-owned subsidiary of Navi Technologies Limited (Navi), today announced the public issue of Secured, Rated, Listed & Redeemable Non-Convertible Debentures (NCDs) amounting to ₹ 600 crores with a base issue of ₹300 crores and an option to retain over-subscription of another ₹300 crores. The issue will open on Monday 23rd May 2022 and is scheduled to close on Friday, 10th June 10, 2022, with an option of early closure or extension.
The proposed NCDs have a rating of A (Stable) by India Ratings & Research Pvt Ltd. This rating is considered to have an adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
Investors get an opportunity to participate in secured NCDs under various series for the tenure of 18 months and 27 months with an effective yield of up to 9.80%* and a minimum application size of ₹10,000.
Speaking about the NCD issue, Ankit Agarwal, Managing Director of NFS said,
“The upcoming NCD issue aims to raise funds for onward lending and financing purposes, This will further diversify our borrowing profile and add more retail investors to our portfolio to complement our wide base of Institutional partners. This is a secured instrument with an A (stable) rating, a low application size, and an effective yield of up to 9.80%*.
Sachin Bansal, Chairman & CEO of NFS added:
“At Navi, our mission is to provide financial products that are simple, affordable, and accessible. I believe that our customer-centric and technology-first approach along with our robust underwriting and collections capabilities adds value to Navi Finserv’s maiden public debt issue.”
NFS offers personal loans and home loans under the “Navi” brand and we have approved personal loans to customers across over 84% of all Indian pin codes. The Company’s net worth stood at Rs 11,895.72 million as of December 31, 2021, and maintained a comfortable standalone debt to equity ratio of 2.1x as of December 31, 2021.
NFS has maintained a strong asset quality reflected by its Net NPA of 0.08% (as of December 31, 2021), which is supported by a collections efficiency of 96.63% (for personal loans disbursed subsequent to April 1, 2021, till December 31, 2021). Its outstanding borrowings on a standalone basis of ₹27,749.76 million as of March 31, 2022, were diversified across an array of instruments such as NCDs, sub-debt, term loans, market-linked debentures, commercial papers, and, securitization instruments such as PTCs.
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