Mumbai, Maharashtra, India:
- The deal recorded strong participation from investors across the spectrum – family offices, ultra HNIs, corporate treasuries and other NBFCs
- A first of its kind in the Indian market, the covered bond issue had underlying loans selected from InCred’s Personal Loans (PL) portfolio, was structured in-house and also placed by the in-house team.
InCred, a new-age financial service platform, has announced that it has successfully closed its second issue of covered bond for Rs. 75 crores. The issue is yet another milestone in InCred’s diversified liability strategy.
The deal recorded strong participation from investors across the spectrum – family offices, ultra HNIs, corporate treasuries and other NBFCs. This covered bond issue is a first of its kind in the Indian market – with the underlying loans selected from InCred’s Personal Loans (PL) portfolio. The transaction structuring was done entirely in-house, unlike most other structured debt issues in the market.
The issue carries a rating of ‘PP-MLD CRISIL AA+r (CE)/Stable’ indicating a high degree of safety with regard to timely servicing and low credit risk. The issuance has a call option at the end of 21 months and the pricing offered is a tight 9.15% (XIRR basis).
Talking about the development, Vivek Bansal, CFO – InCred, said, “It is a huge milestone for us in the diversified liability strategy. This positions InCred well as we continue our focus on funding diversification and innovation to support our asset growth trajectory.”
Covered bonds are a relatively new asset class in the Indian capital markets context with market size of Rs. 2,200 crores in FY21. It is likely to see strong growth in the coming years.
InCred is a new-age financial services group founded with the vision of providing credit to Incredible India and thus, furthering financial inclusion in the country. The company endeavors to disrupt the status quo in traditional lending that seems to exclude those most in need of credit, due to outdated, rigid, and often inefficient processes. The company has designed its products with a razor-sharp focus on serving the unique needs of these under-served segments of customers and leverages technology and data science to make lending quick, simple, and hassle-free. It aspires to be the key partner for all financial requirements of an Indian family.
Founded in the year 2016 by Bhupinder Singh, former head of Investment Banking Deutsche Bank Asia-Pacific, the company launched market operations in January 2017.
InCred offers a broad portfolio of products that cut across key categories such as Personal Loans, SME Loans & Education Loans.