ICICI withdraws Rs 506 crore CDO Fund
Mumbai: ICICI has withdrawn its Rs 506 crore collateralised debt obligation fund (CDO) owing to lack of investor interest.

The CDO fund had opened on 8 March and was scheduled to close on 23 April. The CDO fund was a passive debt scheme under the ICICI securities fund.

The scheme could not sail through because of the complexity of the structure and interest rate uncertainties in the market in the run up to the credit policy.

The fund had three tranches: Class A units of around Rs 376 crore, Class B units of around Rs 59 crore subscribed to by International Finance Corporation (IFC), and Class C units of around Rs 71 crore subscribed to by ICICI.

Each unit had a face value of Rs 50 lakh with a minimum investment of Rs 5 crore. The Class A units were offered to institutional investors including banks, financial institutions, trusts and mutual funds. The rate of returns on the units was to be determined through a book building process.
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ICRA places IFCI in rating watch
New Delhi: ICRA has placed IFCI in rating watch with negative implications owing to asset liability mismatches and high non-performing assets.

The credit rating agency has placed the short term rating in 'A4' indicating risk prone and that of the medium and long term in 'MB' and 'LBB' respectively, reflecting the inadequate safety, an ICRA release said here.

High NPA levels have resulted in income loss and increased the provisiosning/write-offs over the years, it said.

ICRA said it would be critical for IFCI to restructure its laibilities, control furhter slippage in asset quality, improve its recoveries from existing NPAs and continued support from government and other shareholders, it said.

The liquidity problems of IFCI is despite the Rs 1,000 crore assistance announced by the government last fiscal.

The government had infused Rs 400 crore into this cash-starved term lending institution, while LIC and SBI contributed Rs 200 crore each. IDBI had contributed Rs 145 crore of the Rs 200 crore promised to IFCI.
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