CALCUTTA, July 8: IFB Finance has got its unsecured non-convertible debenture (NCD) issue listed on the Over-the-Counter Exchange of India (OTCEI), making it the first such instrument from the eastern region. There are many other debt issues coming up on the exchange via privately placed debenture route.

According to OTCEI sources, there are already 17-18 unsecured debentures listed on the exchange including those from Arvind Mills, Ballarpur Industries, Birla Global Finance, BPL Sanyo Technologies, BPL Limited, Ceat Financial Services, Dabur, Exide Industries, Gujarat Ambuja Cements, Grasim, Raymonds, Investment Corporation of India, Philips Carbon Black, Sterling Holiday Resorts, among others.

The market maker to IFB Finance NCD is Magma Securities, an OTC member from Calcutta while the registrar is ABC Computers Private Ltd. Trading in the debenture started on June 30, 1997.

IFB Finance had raised Rs 4.76 crore through private placement of its NCDs on February 7, 1997. The effective yield on the three schemes - A, B & C works out to 21.95 per cent, 21.17 per cent and 22.22 per cent respectively.

The coupon rate on the monthly payment scheme A is 19 per cent while on the flexible scheme B it is 17 per cent for the first six months, 18 per cent for the next six months and 19 per cent for the last six months. Scheme C is a cumulative growth scheme.

The unsecured debentures carrying a MA+ rating from ICRA mature on August 6, 1998, and have a face value and market lot of Rs 100 and 10 respectively.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.