Lease Plan India Ltd, a 51:49 joint venture between ABN Amro Lease Holding NV (AALH) and International Travel House, is set to float a Rs 30 crore redeemable non-convertible debenture issue.
The issue will be backed by an unconditional and irrevocable guarantee by AALH. The issue has received a 'AAA (fso)' (triple A foreign structured obligation) rating from Crisil.
The rating indicates the highest certainty regarding the timely payment of financial obligations on the instrument.
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The agency said that the strength of the rating is based on the guarantee provided by AALH. Crisil feels that the payment structure is designed to ensure full and timely payment of financial obligations. Lease Plan is to submit the legal opinion regarding the enforceability of the guarantee.
The issue is likely to receive good response from the market because of the rating and the small size of the issue.
Moreover, as the company is not a frequent issuer in the market, the coupon attached to it will also be fine. However, the date when the issue will be launched and the name of the arrangers were not known.
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