BSE: Update on MAS Financial Services Ltd Debt Securities

NOTICE

Notice No.

20220919-47

Date of notice

Sep 19, 2022

Category

Business related

Segment

Debt

Matter

Update on MAS Financial Services Ltd Debt Securities

Contents

Further to notice no. 20220802-24 dated 2 August 2022 relating to debt securities of MAS Financial Services Ltd, Trade Members should note that the code below bearing the following ISIN would be available for trading with the revised terms mentioned below at from Tuesday 20eSeptember 2022:

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Certificate code: 974080, ISIN: INE348L07134<_o3a_p>

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S.NO

PARTICULARITIES<_o3a_p>

EXISTING PROVISION<_o3a_p>

PROPOSED CHANGES<_o3a_p>

REASONING<_o3a_p>

1. <_o3a_p>

Promoter control<_o3a_p>

No existing provision <_o3a_p>

The Promoters must retain management control of the Company and hold at least 51% of the capital.<_o3a_p>

According to the commercially agreed terms between the Company and the debenture holders <_o3a_p>

2. <_o3a_p>

Loan to group company by NBFC<_o3a_p>

No existing provision<_o3a_p>

Company to limit its investment in group entities, including MAS Housing Finance, to 10% of net worth.<_o3a_p>

In accordance with the commercially agreed terms between the Company, holders of debentures<_o3a_p>

3. <_o3a_p>

Date of the increase/decrease coupon<_o3a_p>

Applicable in the event of a downgrade in the rating of the company or the rating of the Debentures <_o3a_p>

To delete <_o3a_p>

In accordance with the commercially agreed terms between the Company, holders of debentures<_o3a_p>

4. <_o3a_p>

Definition of Majority Debenture Holders<_o3a_p>

Persons holding 50% of the debentures <_o3a_p>

To be amended to incorporate references to the SEBI circular bearing the reference number SEBI/HO/MIRSD/CRADT/CIR/P/2020/203 dated October 13, 2020 on “Standardization of Procedure to be Followed by Debenture Trustee(s) in the Event of “Default” by Listed Debt Issuers“<_o3a_p>

Clarifying amendment to align with the requirements prescribed by the Securities and Exchange Board of India (“SEBI“) <_o3a_p>

5. <_o3a_p>

Security <_o3a_p>

The Debentures will be secured by an exclusive and continuing first charge to be created in favor of the Debenture Trustee under an uncertified deed of hypothec (“Mortgage deed“) on certain identified accounts payable/loans receivable of the Company, as described therein (the “Mortgaged property“). The charge on the Mortgaged Assets shall at all times, from the date of deemed grant and until redemption of the Debentures, be at least 1.1 (one decimal one) times the value of the amounts unpaid with respect to the Debentures (the “security blanket“).<_o3a_p>

· Changes to the eligibility criteria for book debts/receivables making up the Mortgaged Assets <_o3a_p>· Changes/clarifications on safety reload times <_o3a_p>· Changes/clarifications to security reporting requirements<_o3a_p>· Other changes consequential to the above <_o3a_p>

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In accordance with the commercially agreed terms between the Company, holders of debentures<_o3a_p>

6. <_o3a_p>

Financial commitments <_o3a_p>

The DTD initially contained provisions allowing the Company and the Bondholders to agree financial covenants <_o3a_p>

The Corporation and the debentureholders have now agreed to the following financial covenants: <_o3a_p>

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· The Company must maintain a capital adequacy ratio of at least 18% (eighteen percent) or such other threshold as may be prescribed by the RBI from time to time <_o3a_p>· The Company shall maintain the ratio of the total debt of the Company to the equity of the Company not exceeding 5 (five) times <_o3a_p>· The Company must maintain the A:B ratio less than or equal to 5% (five percent), where A is the gross NPA of the Company and B is the assets under management of the Company. <_o3a_p>· The Company must maintain the A:B ratio less than or equal to 3% (three percent), where A is the net NPA of the Company and B is the assets under management of the Company. <_o3a_p>· The Company must ensure that it maintains total equity of at least INR 1,000,000,000 (Indian Rupees One Thousand Crore). <_o3a_p>· The Company will ensure that its profit after tax (on an individual basis) remains positive. <_o3a_p>· Any other clauses that may be agreed. <_o3a_p>

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The above will be more particularly developed in the amendments to the DTD. <_o3a_p>

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In accordance with the commercially agreed terms between the Company, holders of debentures<_o3a_p>

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Trade Members may contact the following officials for further details, as appropriate:<_o3a_p>

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Officer’s name<_o3a_p>

Contact details<_o3a_p>

Email ID<_o3a_p>

Mr Akshay Arolkar<_o3a_p>

+91 22 2272 8352<_o3a_p>

[email protected]<_o3a_p>

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Rupal Khandelwal<_o3a_p>

Deputy General Director <_o3a_p>

September 19, 2022<_o3a_p>

Disclaimer

ESB Ltd. published this content on September 19, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Sep 19, 2022 1:29:05 PM UTC.


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John A. Bogar