Credit Access NCDs: An Attractive Investment Opportunity

 

Before diving into the specifics of the NCDs, it's crucial to acquaint ourselves with the issuer. Credit Access Grameen Limited is a prominent Indian micro-finance institution headquartered in Bengaluru. Its core mission revolves around providing joint liability group loans and micro-loans, with a primary focus on empowering women in rural India. As of March 2022, CA Grameen is recognized as India's largest NBFC-MFI based on its impressive gross loan portfolio figures, endorsed by the MicroFinance Institutions Network in India.

Issuer's Focus and Opportunity:

Credit Access Grameen Limited primarily serves women customers in rural India, offering crucial financial support. Their target demographic comprises women with an annual household income of up to Rs 300,000, in alignment with the new microfinance regulations introduced by the RBI in March 2022. The company specializes in providing income generation loans, family welfare loans, home improvement loans, and emergency loans to its customer base.

CA Grameen's promoter, Credit Access India N.V., is a multinational firm specializing in micro and small enterprise financing. The promoter has a history of injecting capital into CA Grameen and facilitating access to potential fundraising avenues within the debt capital markets.

Why Consider Credit Access NCDs in Your Investment Portfolio:

1.       Solid Credit Rating: The NCDs boast a "IND AA-/Stable" credit rating from India Ratings & Research Private Limited, signifying a robust credit profile.

2.       Attractive Returns: Offering coupon rates ranging from 9.10% to 9.70% and effective yields from 9.48% to 10.13%, these NCDs provide competitive returns compared to traditional fixed-income investments.

3.       Diverse Tenors: Investors can select from various tenors, ranging from 24 to 60 months, aligning their investments with their financial goals.

4.       Flexible Interest Payment: Credit Access NCDs accommodate both monthly interest payments and cumulative interest options.

5.       Listed on BSE: These NCDs will be listed on BSE, ensuring liquidity and ease of trading.

Credit Access NCD Investment Opportunity:

Let's delve deeper into the investment opportunity presented by Credit Access Grameen Limited through its NCD issue.

NCD Issue Details:

Issuer: Credit Access Grameen Limited

Base Issue Size: Rs. 400 Crores

Green Shoe Option: Rs. 600 Crores

Total Aggregated Issue: Rs. 1000 Crores

Issue Opening Date: August 24, 2023

Issue Closing Date: September 06, 2023

Face Value: Rs. 1,000 per NCD

Minimum Application: Rs. 10,000 (10 NCDs), collectively across all Options

Listing: The NCDs will be listed on BSE within 6 working days from the respective Tranche Issue Closing Date.

Issuance Mode: Dematerialized form

Credit Rating: IND AA-/Stable by India Ratings & Research Private Limited

Basis of Allotment: First come, first serve

Understanding the Series:

Series I, III, V, and VII provide monthly interest payments, ensuring regular income streams.

Investors have the flexibility to choose the series that best aligns with their financial goals and preferences.

Investment Benefits:

·         Attractive Yields: The NCDs offer competitive coupon rates, with effective yields ranging from 9.48% to 10.13% per annum, depending on the chosen series.

·         Diversity of Options: With eight series to choose from, investors can tailor their investments to suit their financial objectives.

·         Monthly Income: Series I, III, V, and VII provide monthly interest payments, ideal for those seeking regular income.

·         Safety and Credibility: CA Grameen holds a credit rating of "IND AA-/Stable" by India Ratings & Research Private Limited, indicating a strong level of creditworthiness.

How to Invest in Credit Access NCDs:

To invest in Credit Access NCDs, follow these steps:

1.       Check Eligibility: Ensure you meet the eligibility criteria, including the minimum application amount.

2.       Demat Account: If you don't already have one, open a demat account to hold your NCDs electronically.

3.       Apply: Submit your application during the specified period between August 24, 2023, and September 6, 2023.

4.       Allotment: Wait for the basis of allotment to be announced; allotment is on a first-come-first-served basis.

5.       Trading: Once allotted, you can trade these NCDs on the BSE after listing.

Conclusion:

The Credit Access NCD issue presents an enticing investment opportunity for diversifying portfolios and earning attractive returns. Backed by a robust credit rating and offering a variety of series, these NCDs cater to a wide range of investor preferences. Whether you seek monthly income or cumulative growth of your investment, Credit Access NCDs offer both security and potential for substantial returns.

Investors are advised to assess their investment goals and risk tolerance carefully before making a decision. Remember that NCDs, like all investments, carry some level of risk, and it's essential to consult with a financial advisor or expert for personalized guidance.

Don't miss out on this opportunity to invest in the promising Credit Access NCD issue. Begin securing your financial future today.

Disclaimer:

All investments carry inherent risks. Investors should thoroughly review the offer-related documents and seek professional advice before making investment decisions.

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