Franklin Templeton India’s President Sanjay Sapre has told investors that its six debt schemes which are being wound up have received Rs 1,964.21 crore from routine proceeds including maturities, pre-payments and coupon payments since the announcement of the closure of the funds in April.
Mumbai: “From April 24, 2020 to June 15, 2020, the schemes have received Rs 1,964.21 crore from maturities, pre-payments, and coupon payments,” Sapre said in a letter addressed to the investors.
The schemes which are being wound up have assets of over Rs 25,000 crore. He said two of the six schemes – Franklin India Ultra Short Bond Fund and Franklin India Dynamic Accrual Fund – have repaid their bank borrowings and are cash positive. “These schemes can start repayments to investors subject to a successful Unit-holder Vote. We anticipate that Franklin India Ultra Short Bond Fund will have in excess of 7 per cent of its AUM available to distribute to Unit-holders by the end of June 2020, and Franklin India Dynamic Accrual Fund could have in excess of 6 per cent of AUM by the same time,” he said.
In one more scheme, Franklin India Credit Risk Fund, the borrowing level has dipped to 11.25 pc from its original level of 22.27 pc on April 24, 2020.
The schemes which are being wound up have assets of over Rs 25,000 crore. He said two of the six schemes – Franklin India Ultra Short Bond Fund and Franklin India Dynamic Accrual Fund – have repaid their bank borrowings and are cash positive. “These schemes can start repayments to investors subject to a successful Unit-holder Vote. We anticipate that Franklin India Ultra Short Bond Fund will have in excess of 7 per cent of its AUM available to distribute to Unit-holders by the end of June 2020, and Franklin India Dynamic Accrual Fund could have in excess of 6 per cent of AUM by the same time,” he said.
In one more scheme, Franklin India Credit Risk Fund, the borrowing level has dipped to 11.25 pc from its original level of 22.27 pc on April 24, 2020.