Reliance Capital has disclosed that interest/ principal obligations on its non-convertible debentures (NCDs) carrying five different International Securities Identification Numbers (ISINs) due on November 2, 2019 have been delayed.

The non-banking finance company, which has operations spanning segments such as general insurance, life insurance, securities broking and distribution, asset reconstruction and commodity trading, among others, did not disclose the amounts that were due.

The company, in a statement late Saturday, attributed the delay to CARE Ratings downgrading its entire outstanding debt to a default ‘D’ rating (even though there were no overdues on principal or interest payments to any lender), triggering acceleration of various facilities by certain lenders and consequential demands for immediate payment of amounts.

It added that the amounts were otherwise due and payable in a phased manner over the next eight years, until March 2028, per the original terms of lending.

CARE Ratings, in a statement on September 20, said it has revised the rating on various facilities/ instruments of Reliance Capital, taking into account “the recent instance of delay in servicing of coupon on several NCDs by the company”. The coupon was subsequently serviced with a delay of one working day.

“The liquidity profile of the group continues to be under stress on account of delay in raising funds from the asset monetization plan and impending debt payments,” it said.

On November 1, Reliance Capital, in a stock exchange filing, said the interest/principal obligations on an NCD series due on October 31,2019, had been delayed. A couple of days earlier, on October 29, the company had said the interest/ principal obligations on NCD series due on October 28 and 29 has been delayed.

Per the notes to accounts in its first-quarter results, the listed secured NCDs of the company, aggregating ₹14,874 crore as on June 30, 2019, are secured by way of first pari-passu mortgage/charge on the company's immovable property and on present and future book debts/business receivables of the company.

Published on November 03, 2019