Trivandrum: Kerala Financial Corporation (KFC), the pioneer industrial financing institution of Kerala, has added another feather to its cap, by getting the entire Non-SLR Bonds of Rs.200 Crores fully subscribed well in time.
KFC had come out with Non -SLR Bonds of Rs.100 Crores with green shoe option of another Rs.100 Crores on May 07, 2013. The bonds were in the nature of debentures with unconditional and irrevocable guarantee by the Government of Kerala offering interest of 8.72 % payable semi annually. The bonds of Rs.100 Crores were subscribed within nine days. Considering the unprecedented response, the green shoe option for another Rs.100 Crores was exercised and that also stands fully subscribed now.
The bonds were rated ‘A-(SO)’ by Brickwork Rating Agency and the face value of each bond was Rs. 10 lakh with maturity period of 10 years. The investor has the option to redeem the bond at the end of the fourth year at the rate of 25 percent per year from fourth to seventh year.
The Bond issue has evoked unprecedented response from Individuals, PF Trusts, Societies, Corporations and Institutions across India. The major investments have come from Karnataka, Maharashtra and Andra Pradesh.
According to P Joy Oommen, CMD of KFC, the success of this issue is the indicator of the people’s faith in the improved fiscal performance of the Government of Kerala, the Professional Management of KFC and the dedication of its employees.
The Corporation has given consistent performance in the last few years in areas of sanction, disbursement and recovery and has emerged as the best performing public sector undertaking in Kerala. It would also rank No. 1 amongst all State Financial Corporations in the country in terms of profitability and low level of NPA.
Kerala Biz News