Wint Wealth extends senior secured bond problem to retail traders

NEW DELHI: Alternate debt asset platform Wint Wealth on Thursday prolonged senior secured bond based mostly public problem for retail traders. The firm mentioned it has tied up with credit standing lender U Gro Capital for the ₹50 crore public bond problem. The problem is over collateralised by at the very least 62.5 crore value of loans, Wint Wealth added.

Investors will be capable to instantly put money into company bonds issued by non-banking finance firms (NBFCs) by way of their demat accounts with ₹10,000 because the minimal funding quantity. The firm claimed that the general public problem is designed to ship fastened returns to retail traders at low volatility by securing their principal quantity.

“The launch of our first public issue has the potential to disrupt the debt market for retail investors as it enables them to directly invest in corporate bonds. Set for a 27 months maturity period, the asset is fairly non-correlated with the stock market volatility as they are senior secured bonds,” mentioned Ajinkya Kulkarni, co-founder, Wint Wealth.

“The term “senior” in a senior secured bond denotes that bondholders have first priority in receiving payment if the NBFC goes under liquidation. These instruments provide diversification options for a retail investor for their portfolio. However, in the best interest of retail investors, we don’t recommend more than 10% allocation to our products and that too diversified in atleast 5 assets.”

To mitigate threat, these bonds are constructed round parameters of unique cost on underlying safety pool, amortisation, over collateralisation of safety pool and stringent covenants.

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