CreditAccess Grameen’s NCD Tranche I Issue Opens on November 14, 2022 Coupon Rateup to 10.00% p.a. /Effective Yield up to 10.46% p.a.#

 

CreditAccess Grameen’s NCD Tranche I Issue Opens on November 14, 2022

Coupon Rateup to 10.00% p.a. /Effective Yield up to 10.46% p.a.^#

·         Public Issue of Secured, Redeemable, Non-Convertible Debentures (NCDs) of the face value of Rs. 1,000 each

·         The NCD Issue fora Base Issue Size of Rs.250 crore with an option to retain oversubscription up to Rs. 250 crore aggregating up to Rs. 500 crore, which is within the shelf limit of Rs. 1,500 crore

·         NCDs are rated as IND AA-/Stable by India Ratings and Research Private Limited

·         Effective Yield up to10.46% p.a.and Coupon Rate up to 10.00% p.a.^#

·         NCD Issue opens on November 14, 2022, and closes on December 2, 2022, with an option of early closure

·         The NCDs are proposed to be listed on BSE Limited and NSE Limited. NSE is the designated stock exchange for the Tranche I Issue

·         Allotment on first-come-first-serve basis

^#Applicable for NCDs with atenor of 60 months, for further details please refer Shelf Prospectus and Tranche I Prospectus each dated November 04, 2022.

Bengaluru, 09^thNovember, 2022: CreditAccess Grameen Limited, aNon-Banking Financial Company-Micro Finance Institution (NBFC-MFI) offering collateral-free loans to women with an annual household income of Rs.3,00,000 with the primary focus to provide income generation loans,has filed Tranche I prospectus for public issue of secured, redeemable, non-convertible debentures of the face value of Rs. 1,000 each. The base issue size isRs.250 crore with an option to retain oversubscription up to Rs.250 crore, aggregating up to Rs.500 crore, which is within the Shelf limit of Rs. 1,500 crore (“Tranche I Issue”).

The Tranche I Issue opens onMonday,November 14, 2022, and closes onFriday,December 2, 2022,with an option of early closure.The NCDs are proposed to be listed on BSE Limited and NSE Limited (collectively, “Stock Exchanges”) with NSE as the Designated Stock Exchange for the Issue. The NCDs have been rated IND AA-/Stable by India Ratings and Research Private Limited.

The minimum application size would be Rs. 10,000 (i.e. 10 NCDs) and thereafter in multiples of Rs. 1,000 (i.e. 1 NCD) thereof. This issue has tenure options of 24 months, 36 months and 60 months for secured NCDs with monthly and cumulative coupon payment modes being offered across series I, II, III, IV, V and VI. Effective yield (per annum) for NCD holders in all Categories ranges from 9.83% to 10.46% per annum. Amount on maturity for NCD holders in all Categories under the cumulative coupon payment option ranges from Rs. 1,206.57/-to Rs. 1,644.91/-.

Out of the Net proceeds of the Tranche I Issue, at least 75% shall be utilised for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and a maximum up to 25% will be utilisedfor general corporate purposes.

As at September 30, 2022, the Company has a Gross AUM of Rs. 16,539.11 crore on a consolidated basis with presence through 1,684 branches and 10,826 loan officers in India.

 

 

 

The terms of each series of Secured NCDs, offered under Issue are set out below:

Series	I	II	III	IV*	V	VI
Frequency of Interest Payment	Monthly	Cumulative	Monthly	Cumulative	Monthly	Cumulative
Minimum Application	Rs. 10,000 (10 NCDs) across all series
In Multiples of thereafter (Rs.)	Rs. 1,000 (1 NCD)
Face Value/ Issue Price of NCDs (Rs./NCD)	Rs. 1,000
Tenor	24 months	24 months	36 months	36 months	60 months	60 months
Coupon (% per annum) for NCD Holders in all Categories	9.45%	NA	9.60%	NA	10.00%	NA
Effective Yield (% per annum) for NCD Holders in all Categories	9.83%	9.83%	10.02%	10.02%	10.46%	10.46%
Redemption Amount (Rs. / NCD) on maturity for NCD Holders in all Categories	Rs.1,000	Rs.1,206.57	Rs.1,000	Rs.1,332.07	Rs.1,000	Rs.1,644.91
Maturity / Redemption Date (from the Deemed Date of Allotment)	24 months	24 months	36 months	36 months	60 months	60 months
Put and Call Option	Not Applicable

*Our Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.

A. K. Capital Services Limited is the Lead Manager to the Tranche I Issue. Catalyst Trusteeship Limited is the Debenture Trustee and KFin Technologies Limited is the Registrar to the Tranche I Issue.

Please note that the Basis of Allotment under the Issue will be on the basis of the date of upload of each application into the electronic book of the Stock Exchanges in accordance with the SEBI Operational Circular. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on a proportionate basis. For further details, refer section titled “Issue Procedure” on page 93 of the Tranche I Prospectus dated November 4, 2022.