Reliance Mutual Fund has said in a press statement that Reliance Commercial Finance Limited (RCFL) and Reliance Home Finance Limited (RHFL) intend to service all capital market and other loan obligations on the due dates through fast-track asset securitisation.
Reliance Mutual Fund has exposure of Rs.535 crore and Rs.1,083 crore to long term NCDs issued by RCFL and RHFL, respectively. These instruments are held in roughly 10% of RMF’s total 166 fixed income and hybrid schemes.
The fund house said, “Considering the adequate security held by RMF and short tenor of most of its above exposures, RMF believes that the interests of its investors are fully protected. Meanwhile, till maturity of the instruments, and in line with SEBI regulations, there will be a mark to market valuation impact on the above exposure, basis revised valuation provided by independent valuation agencies, with corresponding impact on NAVs of schemes holding these investments.”
RMF also holds exposure of Rs.205 crore in secured long term NCDs of RCL, which continue to be rated as investment grade A by CARE and A+ by Brickworks.
