6 Franklin debt funds collect Rs 1,262 crore in fortnight ended May 14

An identical amount of cash is available for distribution in the funds at the moment

Staff Writer   /   May 18, 2021

The 6 Franklin Templeton debt schemes, under winding up, saw a total cash inflow of Rs 1,262 crore in the fortnight ended May 14. All the 6 debt funds are cash-positive as they have repaid borrowings taken in April last year to honour redemptions. There are no outstanding borrowings in any of the schemes w.e.f. March 30, 2021.

In April last year, Franklin Templeton MF had closed subscriptions and redemptions while proposing to wind up the six debt schemes citing Covid-induced illiquidity in credit markets.

The 6 schemes have received total cash flows of Rs 20,615 crore till May 14, 2021 from maturities, coupons, sale and prepayments since winding up.

Cash inflows represent inflows from maturities, part payments, pre-payments, sale and coupons which have been utilised for payment of borrowings/ interest/ expenses and provisions, if any. The balance cash, if any, is invested in SBI Overnight Fund.

Borrowings repaid by the funds stand at Rs 4,476 crore.

The 6 funds have so far distributed cash worth Rs 14,572 crore in 3 tranches. The latest tranche of cash was paid out in the week starting May 3.

Cash available for distribution across the 6 Franklin MF debt schemes stands at Rs 1,261 crore currently.

The 6 schemes are Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan and Franklin India Income Opportunities Fund.

SBI Funds Management Pvt. Ltd. (SBI MF) is the liquidator appointed by the Honourable Supreme court in monetizing the portfolios of these schemes and returning monies to investors at the earliest.

Related:
Franklin debt funds investors to get back Rs 2,488 cr in week starting May 3

One year of Franklin MF debt funds crisis; what led to it

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