Scribd Logo
Upload

Welcome to Scribd!

  • 46 views

    Structured Products: (Market Linked Debentures)

    Uploaded by

    ghodababu
    1) Market linked debentures are aimed at providing targeted returns to investors through underlying positions in futures, options, and listed securities. 2) The issuer, Abans Finance Private Limited, manages the underlying risk and issues secured, rated, principal protected debentures to investors through private placement. 3) These 17-18 month debentures will pay a 13.68% contingent coupon if the final Nifty closing value is at or above 10% of the initial fixing level, otherwise no coupon will be paid.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Structured Products: (Market Linked Debentures)

    Uploaded by

    ghodababu
    46 views1 page
    1) Market linked debentures are aimed at providing targeted returns to investors through underlying positions in futures, options, and listed securities. 2) The issuer, Abans Finance Private Limited, manages the underlying risk and issues secured, rated, principal protected debentures to investors through private placement. 3) These 17-18 month debentures will pay a 13.68% contingent coupon if the final Nifty closing value is at or above 10% of the initial fixing level, otherwise no coupon will be paid.

    Original Title

    9.25% fixed coupon

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) Market linked debentures are aimed at providing targeted returns to investors through underlying positions in futures, options, and listed securities. 2) The issuer, Abans Finance Private Limited, manages the underlying risk and issues secured, rated, principal protected debentures to investors through private placement. 3) These 17-18 month debentures will pay a 13.68% contingent coupon if the final Nifty closing value is at or above 10% of the initial fixing level, otherwise no coupon will be paid.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views1 page

    Structured Products: (Market Linked Debentures)

    Uploaded by

    ghodababu
    1) Market linked debentures are aimed at providing targeted returns to investors through underlying positions in futures, options, and listed securities. 2) The issuer, Abans Finance Private Limited, manages the underlying risk and issues secured, rated, principal protected debentures to investors through private placement. 3) These 17-18 month debentures will pay a 13.68% contingent coupon if the final Nifty closing value is at or above 10% of the initial fixing level, otherwise no coupon will be paid.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 1

    STRUCTURED PRODUCTS

    (Market Linked Debentures)


    Kindly note, this document is not an offer of debentures, it illustrates how market linked debentures work

    HOW DOES I T WORK?

    01 02 03 04
    Structured Products The issuer manages Market Linked LTCG generated
    are aimed at underlying risk by Debentures are from sale of listed
    providing targeted taking suitable posi- issued under private security after 12
    pay-off/ROI to tions in Futures and/or placement guidelines. months taxed at
    investors through Options contract so The investor receives 10% if exited
    Market Linked that targeted returns debentures in before maturity
    Debentures can be generated. Demat account.

    Balance Sheet Summary as on


    31st March 2020 (Provisional)

    LIABILITIES ASSETS • Less than 1x leverage as against


    RBI allowed limit of 6x.
    Particular Amt (Crs) Particular Amt (Crs) • MLD’s are being issued as secured
    Share Capital 274 Office Property 14
    instruments which is currently only 2%
    of Balance Sheet size
    Unsecured Borrowing 232 Investment in subsidiary cos 63 • AFPL received funding of INR 100 cr in
    Secured Borrowing Loans & Advances
    2019 with 8% dilution in promoter
    9 438 holding from Teesta Retail Pvt Ltd
    (wholly owned subsidiary of
    TOTAL 515 515 Reliance Industries Ltd)

    FIXED INCOME STRATEGY SCENARIO ANALYSIS


    • Tenure - 17/18 Months • Payoff - 9.25% Coupon p.a
    INITIAL NIFTY = 11,000
    Issuer Abans Finance Private Limited
    Final Nifty Level Nifty Return Product Return
    Market Linked, Secured, Listed, Rated, Principal
    Instrument 13,200 20% 13.68%
    Protected, Redeemable, Non Convertible Debentures
    12,100 10% 13.68%
    Issuer rating PP MLD BBB- (Stable) by CARE
    11,000 0% 13.68%
    ISIN INE00ZD07363
    1,100 -90% 13.68%
    Issue Type Further Issuance
    990 -91% 0.00%
    Tenor(days) 540 Days (Redemption Date – 15/02/2022)
    0 -100% 0.00%
    Contingent Coupon 13.68%
    Underlying Nifty 50 Index Closing Value on Targeted 8.29% p.a Post Tax return, LTCG of
    Initial Fixing Level 10% from sale of listed instrument assuming
    24-08-2020 (11,466.45)
    it is exited before maturity
    Final Fixing Level Underlying Nifty 50 December 2021 options contract expiry
    Nifty Performance
    {(Final Fixing Level/Initial Fixing Level)-1}*100 September Trade 10/09/2020 30/09/2020
    (NP) (in %)
    Dates & Value:
    If Final Fixing Level is at or above
    10% of Initial Fixing Level Contingent Coupon Cheque Amt (INR)
    1,00,431 1,00,938
    Coupon Payoff per debenture:
    If Final Fixing Level is below 10% Nil
    Initial Fixing Level *Minimum Trade quantity – 10 debentures

    *Disclaimer – Please refer Section 112 of Income Tax Act and seek advice from your tax advisor regarding taxation on your investment

    You might also like