KFC bonds fully subscribed in five days

Kerala Financial Corporation’s (KFC) bond issue of Rs 100 crore has been fully subscribed within five working days from the date of opening of the issue.

The bonds were floated in the first week of December, said Mr Premnath Ravindranath, General Manager, KFC.

The corporation has since decided to exercise the green shoe option of retaining another Rs 100 crore to give an opportunity for even more investors to be a part of the State’s growth story.

The bonds are in the nature of debentures with unconditional, irrevocable guarantee of the State Government.

They are redeemable, non-convertible and taxable and is rated “A-(SO)” by Brickwork Rating Agency.

The face value of each bond will be Rs. 10 lakh with an annualised yield of 10.23 per cent. The maturity of the bond is 10 years.

However the investor will have the option to redeem the bond at the end of the fourth year at the rate of 25 per cent per year from fourth to seventh year.

The bonds will be listed on Bombay Stock Exchange (BSE). The issue closes on December 20.

The first such issue in six years, it has evoked good response from investors across the country,

Major investments have come in from Gujarat, Pune, Bangalore, Orissa, Jharkhand, Tamil Nadu and from within the home State.

It is one of the most healthy public sector enterprises of the State and the leading State Financial Corporation in the country.

The success of this issue is also an indicator of people’s faith in the improved fiscal performance of the Government, the professional management of KFC and its employees.