Loan Instrument – Flight 93 http://flight93.org/ Thu, 08 Jul 2021 11:32:39 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://flight93.org/wp-content/uploads/2021/07/icon-5-150x150.png Loan Instrument – Flight 93 http://flight93.org/ 32 32 Concerns about possible misuse of COVID-19 funds continue to grow http://flight93.org/concerns-about-possible-misuse-of-covid-19-funds-continue-to-grow/ Thu, 08 Jul 2021 07:34:57 +0000 http://flight93.org/concerns-about-possible-misuse-of-covid-19-funds-continue-to-grow/ Results revealed a lack of transparency and accountability for covid spending • Research on the use of COVID-related spending has raised some concerns • Results revealed possible misuse of COVID funds continuing to grow in Africa • Since the start of the pandemic, Ghana has received grants from the IMF and the World Bank Research […]]]>

Results revealed a lack of transparency and accountability for covid spending

• Research on the use of COVID-related spending has raised some concerns

• Results revealed possible misuse of COVID funds continuing to grow in Africa

• Since the start of the pandemic, Ghana has received grants from the IMF and the World Bank

Research from the Covid Transparency and Accountability Project (CTAP) has shown that while governments work to tackle the COVID-19 pandemic and revive their economies from its ravages, concerns about a possible misuse of COVID funds continue to grow. grow in Africa.

Results that were conducted in seven African countries (Ghana, Nigeria, Malawi, Sierra Leon, Kenya, Cameroon, Liberia) revealed a lack of transparency and accountability for covid-related spending.

“While most countries have signed up to processes such as open contracts and beneficial ownership to access funds, there has not been full compliance, as evident from the obvious shortcomings,” the CTAP report said. .

Since the emergence of the health crisis, the government of Ghana has drawn billions of dollars from credit and grant programs from the International Monetary Fund (IMF), the World Bank, the Bank of Ghana, among other development partners. .

Although audit processes may be necessary to determine misuse of resources, lack of detail on public procurement and delays in accounting for funds leave room for misconceptions and erode confidence in public expenditure management. .

“As emergency procurement regimes have been adopted globally to save lives urgently, the disbursement process has been exposed to a greater potential for fraud, mismanagement and inefficiencies. general than usual, ”the report said.

CTAP found that commitments under the IMF’s Rapid Financial Lending Instrument to publish procurement plans, notices and terms of reference related to emergency response were largely not met in the seven countries monitored.

Of the many government contracts awarded during the pandemic, details of a handful can be viewed on the e-procurement platform created to facilitate public procurement processes and reduce the human interface that breeds corruption.

“During the COVID-19 pandemic in 2020, only a few contracts were published on the portal, other public contracts for the period were not published,” the study revealed.

“In general, some of the names of companies that have been awarded other contracts for COVID-19 have indeed fallen into the public domain, but not as a result of their publication in the National Gazette by the Ghana Ministry of Finance, like this is required for the purchase of items which are in the national interest; some of the winning companies have been identified through the work of journalists and CSOs, most of them not included in the list of companies approved by the Autorité des marchés publics, ”he added.

The CTAP, however, commended the government for adopting electronic platforms in the application and disbursement of the GH ¢ 600 million CAP-BuSS support program to small and medium-sized enterprises.

According to the report, African countries have faced challenges in adhering to high standards of accountability “even amid evidence of corruption and undue profit from the pandemic.”

“A common thread runs through countries: far-reaching reforms in transparency and accountability are needed, especially in a time of emergency such as the COVID-19 pandemic,” the report recommends.

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Lufthansa gets € 1 billion in extra cash: what it means http://flight93.org/lufthansa-gets-e-1-billion-in-extra-cash-what-it-means/ Thu, 08 Jul 2021 05:31:09 +0000 http://flight93.org/lufthansa-gets-e-1-billion-in-extra-cash-what-it-means/ German airline Lufthansa increased its cash reserves by 1 billion euros ($ 1.18 billion) after a successful bond issue. This is the second time this year that Lufthansa has visited the markets to raise funds. As of March 31, Lufthansa had approximately € 10.6 billion in cash and cash equivalents. Lufthansa has just raised an […]]]>

German airline Lufthansa increased its cash reserves by 1 billion euros ($ 1.18 billion) after a successful bond issue. This is the second time this year that Lufthansa has visited the markets to raise funds. As of March 31, Lufthansa had approximately € 10.6 billion in cash and cash equivalents.

Lufthansa has just raised an additional € 1 billion in cash. Photo: Lufthansa

High bond demand reflecting strong confidence in Lufthansa

The most recent bonds were placed in two tranches. The first € 500 million was raised via a € 100,000 series of three-year bonds with an annual interest rate of 2.0%. Lufthansa raised the second 500 million euros via eight-year bonds with an interest rate of 3.5%.

Demand has been high for bonds, reflecting investor confidence in Lufthansa’s future. The demand for the two tranches was almost double what was available. Citi, Credit Suisse, HSBC and ING handled the transaction.

A bond is a fixed instrument loan. The lender, usually but not always a financial institution, receives a fixed interest rate and repayment rate. Typically, businesses, municipalities, states, and governments raise funds through bonds. Air France-KLM, easyJet, IAG and Ryanair have all raised funds using bonds this year.

“The repeated and successful placement of a corporate bond once again confirms our access to a variety of advantageous financing instruments,Says Remco Steenbergen, CFO of Deutsche Lufthansa AG.

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Investors flocked to buy Lufthansa bonds. Photo: Lufthansa

Money used to strengthen Lufthansa’s liquidity position

Lufthansa has already secured the refinancing of all financial liabilities due in 2021. The airline says the new funding will further strengthen the liquidity of the Lufthansa Group.

In 2020, Lufthansa received a € 9 billion bailout package from state lender KfW, of which around € 2.5 billion was used. The bond issue earlier this year was used to repay € 1 billion from that bailout. Last month, the airline said it wanted to pay off the outstanding balance by the German federal election in September 2021.

“We were one of the first companies the federal government saved. We also want to be one of the first to repay our aid – hopefully before the federal election ”, said CEO Carsten Spohr.

Lufthansa says it plans to raise more money to do this. In addition to repaying the bailout money, Lufthansa wants to restore a long-term sustainable and efficient capital structure. Lufthansa said it had not yet decided on the size and timing of a possible future capital increase.

“We can obtain financing on the capital market on more favorable terms compared to stabilization measures. We continue to work systematically on our restructuring measures to repay government stabilization measures as quickly as possible ”, Remco Steenbergen said on Wednesday.

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There is finally some light on the horizon for Lufthansa. Photo: Lufthansa

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A little light on the horizon for Lufthansa

After 15 difficult months, there is some light on the horizon for the Frankfurt-based airline. Low COVID rates mean Lufthansa is seeing more business passengers in Germany and across Europe. It’s not a full rebound, but the trend is in the right direction.

“For the past four weeks, we have seen increased demand for business flights for September, October and November. This is a clear signal… We are currently experiencing a return to business travel. In Germany and in Europe in particular, business demand for air transport is clearly on the rise again. Lufthansa director Harry Hohmeister said.

As the United States also begins to bring COVID under control, Lufthansa is ambitiously considering a full transatlantic return within the next two months. As business slowly shows signs of normalizing at Lufthansa, the airline is growing more confident in its ability to manage debt and that further capital raises are on the horizon.

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IIFL Home Loan NCD Issue Offers Up To 10%: Should You Invest? http://flight93.org/iifl-home-loan-ncd-issue-offers-up-to-10-should-you-invest/ Thu, 08 Jul 2021 05:30:03 +0000 http://flight93.org/iifl-home-loan-ncd-issue-offers-up-to-10-should-you-invest/ 1. Details of the problem: Issue date: The IIFL 10% NCD issue was opened on July 6 and will be available until July 28 for subscription Issue price / face value – Rs. 1000 per MNT Closing of the issue on July 28, 2021 Registrar Link Intime India Pvt Limited Allotment on a first come, […]]]>

1. Details of the problem:

Issue date: The IIFL 10% NCD issue was opened on July 6 and will be available until July 28 for subscription

Issue price / face value – Rs. 1000 per MNT

Closing of the issue on July 28, 2021

Registrar Link Intime India Pvt Limited

Allotment on a first come, first served basis ***

Listing on BSE Ltd and NSE Ltd

Issue price Rs. 1,000 per MNT

Face value Rs. 1000 per MNT

Minimum application Rs. 10,000 (10 MNT) & in multiples of ₹ 1,000 (1 MNT)

Issue size Rs. 10,000 million (₹ 1,000 cr)

Redeemable subordinated unsecured nature NCD

CRISIL AA / Outlook STABLE and Brickwork AA + / Outlook Negative credit ratings

2. Company profile:

2. Company profile:

IIFL Home Finance is the 100% subsidiary of IIFL Finance and is the housing finance company. The company offers real estate loans, secured loans as well as financing loans for affordable housing projects.

3. Assessment:

3. Assessment:

The issued CRS was rated by CRISIL as AA / Outlook STABLE and Brickwork AA + / Outlook Negative. The rating suggests a high degree of security with respect to the timely servicing of financial obligations and carries low credit risk.

4. Objectives of NCDs:

4. Objectives of NCDs:

The proceeds of the offer will be used for the loan, financing, repayment or early repayment of principal as well as interest on existing borrowings as well as for general corporate purposes. The company’s prospectus available for this purpose stated that it intended “to use the funds that are raised through this Tranche I issue, after deducting expenses related to the issue to the extent payable by our company (“Net Proceeds”), to finance the following objects i.e. subsequent loans, financing, repayment / early repayment of interest and principal of existing loans (collectively, hereinafter referred to as “Objects”) and for other business purposes.

    5. Returns:

5. Returns:

Series I II III
Frequency of interest payments Annual Monthly Accumulation
Mandate 87 months 87 months 87 months
Coupon% per year ten% 9.6% N / A
Effective yield ten% 10.03% 10.02%

6. Taxation:

6. Taxation:

Interest earned on these CRS is fully taxable at the investor’s slab rate in the year the interest income is received.

    7. Conclusion:

7. Conclusion:

These NCDs should be invested by investors who have a sufficiently good appetite for risk, because the real estate loan offer from IIFL is not supported by the financial assets of the company and if the finances of the company are ‘weaken at some point during NCD’s tenure, the company may default. This is even if the CRS credit rating is pretty decent with a “stable” outlook, but notably can change over time. In addition, the instrument is a bet for a longer duration, so it is not suitable for everyone and investors who do not understand the credit risk should drop this offer despite the high interest rate.

BonRetours.in

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