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Debenture

A type of debt instrument that is not secured by physical asset or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond in order to secure capital. Like other types of bonds, debentures are documented in an indenture.

Debentures have no collateral. Bond buyers generally purchase debentures based on the belief that the bond issuer is unlikely to default on the repayment. An example of a government debenture would be any government-issued Treasury bond (T-bond) or Treasury bill (T-bill). T-bonds and T-bills are generally considered risk free because governments, at worst, can print off more money or raise taxes to pay these type of debts


Edelweiss Application Form

Edelweiss SP Offerings

Product Performance Scenario - Edelweiss-Secured-Non Convertible Debentures (NCDs)

PRODUCT

Edelweiss Structured Product (NCDs)

Period in Months

14/15 Months

Last date

23rd June, 2011

ELD Issuer

ECL Finance Ltd

Initial NIFTY Level

Date of Allotment

Final Level

Close on 14th month

Placement Charges

2% (Upfront & one time)

Minimum Investment (In Rs.)

500000

Initial Level of NIFTY(For e.g.)

5500

Product Participation on underlying Nifty

100%

Closing NIFTY Level

Nifty Performance

Nifty performance consider for Product Retrun (Absolute)

Guranteed Product Retrun (Absolute)

Total Product Return (Absolute)

Redemption Value of Investment on Maturity

3850.00

-30.00%

0.00%

0.00%

0.00%

500000

4050.00

-26.36%

0.00%

0.00%

0.00%

500000

4262.50

-22.50%

0.00%

0.00%

0.00%

500000

4290.00

-22.00%

0.00%

11.00%

11.00%

555000

4675.00

-15.00%

0.00%

11.00%

11.00%

555000

4950.00

-10.00%

0.00%

11.00%

11.00%

555000

5500.00

0.00%

0.00%

11.00%

11.00%

555000

6050.00

10.00%

10.00%

11.00%

21.00%

605000

6599.45

19.99%

19.99%

11.00%

30.99%

654950

6599.99

20.00%

0.00%

11.00%

11.00%

555000

7150.00

30.00%

0.00%

11.00%

11.00%

555000

 

 

 

 

 

 

Key Highlights:

 

 

 

 

 

Maximum Return (Absolute)

30.99%

 

 

 

 

Minimum Return (Absolute)

0.00%

 

 

 

 

Capital Protection

YES

 

 

 

 

Guaranteed Return

11%*

 

 

 

 

* Upto the Nifty Downside of 22.49%

 

 

 

 

 

 

Following are the timelines and details of the offerings: -

 

Underlying

Capital Guarantee

Tenor

Funds Pay-in & Documentation

Trade Date

Upfront fees

Nifty

100% Principal Protected

14/15M

23rd June, 2011

24th June, 2011

2%

 

 

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