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NEW DELHI: Alternate debt asset platform Wint Wealth on Thursday extended senior secured bond based public issue for retail investors. The company said it has tied up with credit rating lender U Gro Capital for the ₹50 crore public bond issue. The issue is over collateralised by at least 62.5 crore worth of loans, Wint Wealth added.
Investors will be able to directly invest in corporate bonds issued by non-banking finance companies (NBFCs) through their demat accounts with ₹10,000 as the minimum investment amount. The company claimed that the public issue is designed to deliver fixed returns to retail investors at low volatility by securing their principal amount.
"The launch of our first public issue has the potential to disrupt the debt market for retail investors as it enables them to directly invest in corporate bonds. Set for a 27 months maturity period, the asset is fairly non-correlated with the stock market volatility as they are senior secured bonds," said Ajinkya Kulkarni, co-founder, Wint Wealth.
"The term "senior" in a senior secured bond denotes that bondholders have first priority in receiving payment if the NBFC goes under liquidation. These instruments provide diversification options for a retail investor for their portfolio. However, in the best interest of retail investors, we don’t recommend more than 10% allocation to our products and that too diversified in atleast 5 assets."
To mitigate risk, these bonds are built around parameters of exclusive charge on underlying security pool, amortisation, over collateralisation of security pool and stringent covenants.
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