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Rockland Leasing offers secured NCDs
FE Investor Bureau
NEW DELHI, January 22: After the launch of secured fixed deposits, Rockland Leasing has come up with yet another "innovative" scheme. The Delhi-based company is luring investors with secured non-convertible debentures (NCDs) which promise a yield of over 30 per cent. However, this time the company is maintaining a low profile and has shied away from publishing its name in the advertisements. The advertisements, published in leading financial dailies, only mention a mobile number which investors have to call for details. According to sources, the company does not want to attract RBI's attention on the high interest rates being offered by it.Marketing agents, however, are trying to hard sell the issue by convincing investors of the credibility of the company. "Rockland Leasing is one of the top finance companies and figures in RBI's A list of NBFCs," says one marketing agent. He also said the company had managed issues worth Rs 40 crore this year despite the bad market conditions. The agent also harped on
the fact that the debentures are extremely safe as they are secured against the assets of the company. "You will have the first charge on the assets of the company," he said. He also refused to say why the company was offering a coupon of 18 per cent on its NCDs when it offered only 13 per cent on its secured FDs launched a couple of months ago. The only explanation was "interest rates have moved up". The debentures have a coupon of 18 per cent which would be compounded monthly for 18 months to give an yield of over 30 per cent. There is another option whereby investors can a get a quarterly interest payment of 18 per cent for 18 months. The minimum investment is Rs 5,000 and the Rs 5 crore issue has not been rated.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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