Regency Fincorp Secures Rs 50 Crore via Private NCD Placement

Issue Size: Rs 50 crore | Coupon Rate: 13% per annum

Reader Takeaway: The NCDs are backed by a 1.35x security cover, offering investors yield with structured repayment.

What just happened

Regency Fincorp Limited has finalized the allotment of 50,000 secured, rated, redeemable Non-Convertible Debentures (NCDs) through a private placement. The issuance raised a total of Rs 50 crore, with a face value of Rs 10,000 per debenture.

Why this matters

The company is tapping the debt market to raise capital at a 13% annual interest rate. The issuance attracted interest from entities including Sunrise Gilts and Securities Private Limited, Eshiruss Financial Consultants Private Limited, and Infixin Technologies Private Limited.

Terms and Security

Investors are provided with a security cover ratio of 1.35x (135%) of the outstanding amounts. The security is tied to the company’s performing assets, specifically MSME secured loan receivables and digital lending loan receivables that currently have zero days past due (0 DPD).

Repayment Schedule

The debentures carry a 36-month tenure with a maturity date of August 27, 2029. Regency Fincorp has structured the principal repayment into five equal tranches of 20% each. These repayments will commence at the end of the 32nd month and continue until the 36th month, providing a staggered exit for the debenture holders.

What to track next

Investors should monitor the company's asset quality and the performance of its MSME and digital loan portfolios, as these receivables serve as the primary security for this debt issuance.