JM Financial Credit Solutions Limited Secured, Rated, Listed, Redeemable, NCDs Issue to open on November 20, 2018

Mumbai, November 14, 2018: JM Financial Credit Solutions Limited (the “Company”), the NBFC arm of the JM Financial Group providing integrated financial solutions to real estate developers, proposes to open on November 20, 2018, a public issue of secured, rated, listed, redeemable, Non-Convertible Debentures of face value of Rs. 1,000 each (“Secured NCDs”) with a Base Issue size of Rs. 2,500 million with an option to retain oversubscription up to Rs. 10,000 million, aggregating upto Rs. 12,500 million (“Tranche II Issue”), which is within the Shelf Limit of Rs. 20,000 million. In Tranche 1, the Company had raised Rs. 7,500 million in the month of June 2018.

The Issue is scheduled to close on December 20, 2018 with an option of early closure or extension as decided by the Board of Directors of the Company (“Board”) or the NCD Public Issue Committee constituted by the Board of Directors.

Ratings by ICRA & India Ratings indicate ‘High degree of safety’ regarding timely servicing of financial obligations

The Secured NCDs have been rated [ICRA] AA/Stable by ICRA for an amount of up to Rs. 20,000 million vide its letter dated April 27, 2018 and further revalidated on November 1, 2018, and have been rated IND AA/Stable by India Ratings for an amount up to Rs. 20,000 million vide its letter dated April 27, 2018 which has been revalidated on November 1, 2018.  The rating of the Secured NCDs by ICRA and India Ratings indicates high degree of safety regarding timely servicing of financial obligations.

Mr. Shashwat Belapurkar, CEO, JM Financial Credit Solutions Limited, said, “JM Financial Credit Solutions Ltd. is a real estate NBFC, with a successful track recordwhich has been delivering stable and sustainable financial performance over the years coupled with a conservative debt equity ratio and strong asset quality. With our strong client base and a superior franchise model, we expect the growth momentum to continue going forward. We are overwhelmed with the response received for our first maiden issue earlier this year and are offering an additional interest incentive of 15 basis points per annum for 5 years & 10 years tenure to the eligible investors. Also, the effective yield for Tranche II secured NCDs is at least or above 10% across various Options/Series ranging from 42 months to 120 months.

Issue Structure:

In Option 1, interest will be paid on an annual basis at a rate of 10.00% p.a.; and the tenor is 42 months. The Effective Yield (per annum) is 10.02%.

In Option II, interest will be paid on a cumulative basis and the tenor is 42 months. The redemption amount per NCD is Rs. 1,396.15. The Effective Yield (per annum) is 10.00%.

In Option III, interest will be paid on an annual basis at a rate of 10.10% p.a. and the tenor is 60 months. The Effective Yield (per annum) is 10.09%.

In Option IV, interest will be paid on a monthly basis at a rate of 9.67% p.a. and the tenor is 60 months. The Effective Yield (per annum) is 10.10%.

In Option V, interest will be paid on an annual basis at a rate of 10.25% p.a. and the tenor is 120 months. The Effective Yield (per annum) is 10.24%.

In Option VI, interest will be paid on a monthly basis at a rate of 9.81% p.a. and the tenor is 120 months. The Effective Yield (per annum) is 10.25%.

[Category IV Investors (Retail Individual Investors) are defined as Resident Indian individuals and HUFs through the Karta applying for an amount aggregating for an amount up to and including Rs. 10 lakh, across all Options/Series of Secured NCDs. Category III Investors (High Net-worth Individuals or HNIs) Investors are Resident Indian individuals and HUFs through the Karta applying for an amount above Rs. 10 lakh, across all Options/Series of Secured NCDs].

The minimum application amount is Rs.10,000 collectively across all Options/Series on NCDs and in multiples of One (1) NCD of face value of Rs. 1000 each after the minimum application. Allotment is on a first-come-first-serve basis (on the date of oversubscription the allotments will be made to the applicants on a proportionate basis). Investors have to apply for NCDs only in dematerialized form.

The Secured NCDs offered through the Shelf Prospectus dated May 16, 2018 and the Tranche II Prospectus dated November 12, 2018 are proposed to be listed on BSE Limited (“BSE”). BSE will be the designated stock exchange.

The Lead Managers to the Issue are A. K. Capital Services Ltd., JM Financial Limited, Edelweiss Financial Services Limited and Trust Investment Advisors Private Limited.

In compliance with the proviso to Regulation 21A(1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with proviso to Regulation 5(3) of the SEBI ICDR Regulations, JM Financial Limited will be responsible only in marketing of the Issue.

About JM Financial Credit Solutions Limited

The Company is a Systemically Important Non–Deposit taking Non–Banking Financial Company (“NBFC ND – SI”) forming part of the JM Financial group. It is a wholesale finance NBFC and provides integrated financial solutions to real estate developers with a focus on residential project financing such as funding real estate developers at various stages in the life cycle of a real estate project. It commenced lending to real estate developers in 2014 and its clients are located in Mumbai, Pune, Bengaluru, Chennai, Hyderabad, NCR and Kolkata. For the Fiscal 2018, its loan book stood at ₹ 73,388.8 million as compared to ₹ 56,581.5 million as of Fiscal 2017. It provides secured and unsecured lending to the real estate developers. Its product portfolio consists of Project finance; Loans against property; Loans against shares; Project at early stage loans; and Loans against land.