ICFC Finance Limited is issuing its “9% ICFC Finance Limited Debenture 2088” to the general public, offering investors a stable and secure return over a 7-year maturity period. Kumari Capital Limited is managing the debenture issuance process.
Key Features of the Debenture:
- Issue Size: A total of 3,00,000 units, each priced at Rs. 1,000, amounting to Rs. 30 Crore.
- Coupon Rate: 9% per annum.
- Maturity Period: 7 years, with the principal and final interest paid in full at the end of the period.
Allocation Breakdown:
- Private Placement: 60% or 1,80,000 units (Rs. 18 Crore).
- Public Issue: 40% or 1,20,000 units (Rs. 12 Crore) out of this 6,000 units (5%) are reserved for mutual funds.
Application Details:
Applicants must apply for at least 25 units and can apply for up to 1,20,000 units. The application period starts on Magh 9, 2081, and the earliest closing date is Magh 13, 2081 (after banking hours). If the offering is not fully subscribed, the deadline may be extended until Magh 23, 2081.
Interest Payment Details:
Interest will be paid semi-annually:
- First Half-Year: After Poush ends, payment on Magh 1 (or the next working day if it’s a public holiday).
- Second Half-Year: After Asadh ends, payment on Shrawan 1 (or the next working day).
Tax deductions on interest:
- Individuals: 6%.
- Institutions: 15%.
- Mutual Funds: Exempted.
ICFC Finance Networth Details:
Debenture Redemption Reserve:
ICFC Finance will allocate Rs. 5 Crore annually to the Debenture Redemption Reserve Fund starting from the second fiscal year until the seventh fiscal year. This ensures timely repayment, even if the company does not generate profit in any fiscal year.
Credit Rating:
The debenture has been rated CARE-NP BBB- (Is) by CARE Ratings Nepal, indicating a moderate degree of safety for timely servicing of financial obligations and a moderate credit risk.
Why Invest?
This debenture offers a secure and predictable return of 9% annually, making it an attractive option for long-term investors. Its strong credit rating and structured repayment mechanism provide a reliable opportunity to grow wealth steadily over time.