Rating : CARE AAA by CARE BWR AAA, Outlook: Stable by Brickwork
|Interest type||Interest type||Fixed||Fixed||Fixed||Fixed||Fixed|
|Tenor||Tenor||3 Years||5 Years||10 Years||3 Years||5 Years|
|Frequency of Interest Payment||Frequency of Interest Payment||Monthly||Monthly||Monthly||Annual||Annual|
|Category I & Category II||Category I & Category II||8.74%||8.74%||8.74%||9.10%||9.10%|
|Category III & Category IV||Category III & Category IV||8.83%||8.88%||8.935%||9.20%||9.25%|
|Tenor||10 Years||3 Years||5 Years||10 Years||3 Years|
|Frequency of Interest Payment||Annual||NA||NA||NA||Annual|
|Category I & Category II||9.10%||9.10%||9.10%||9.10%||9.10% *|
|Category III & Category IV||9.30%||9.20%||9.25%||9.30%||9.20%*|
The most popular NCD of these types is the series with monthly interest and annual interest . Others are not traded frequently. Series VII to IX are cumulative. This offer can be compared with some other popular & frequently traded NCDs. Series VI appear attractive for those seeking annual interest and Series IV & V for those looking for annual interest option for a shorter period. Setries III is for monthly income.
|NCD||Series||Rating||Bond Type||Coupon rate||YTM at LTP (%)||Face Value||Price||Volume|
- The Bonds are rated AAA, which ensure a high degree of safety.
- Past issues by MMFSL was a success and wit a coupon rate of 9% the NCD listed a very niominal premium and has given some capital gain to the investors.
- AAA rated MMFSL NCDS trade in high volumes & are liquid. Given the issue size of DHFL, good liquidity is expected.
- With upfront brokerage from brokers in range of 0.5-1%, this issue can become slightly better in terms of yield than the yield on listed bonds.
- Issue is good for people who fall in zero tax bracket or 10% tend bracket. There after post tax returns are poor.
- The issue which is AAA seems to offer only slightly lower return eturn as AA rated ECL finance N5 popular NCD (monthly interest 12%, YTM 9.2)