Indiabulls to raise Rs 7,000 crore through NCDs

Indiabulls Housing Finance will issue up to Rs 7,000 crore through a public issue of bonds, which will be of secured and unsecured redeemable non-convertible debentures (NCDs), opening on September 15, 2016. The proceeds raised through this issue will be used for onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and for general corporate purposes. The base issue is of Rs 3,500 crore with an option to retain over-subscription of up to Rs 3,500 crore of subscription. The unsecured redeemable non-convertible debentures will be in the nature of subordinated debt and will be eligible for Tier-II capital. The issue closes on September 23, 2016. The NCDs have been rated as “CARE AAA” by CARE and “BWR AAA” by Brickwork (Highest Credit Rating), attractive annual yields ranging from 8.55 per cent to 9.15 per cent per annum. Also, additional 10 bps for senior citizens investing in retail category will be given along with options of three, five and 10 years tenor for secured NCDs and 10-years for unsecured NCDs. Monthly, cumulative and annual options for investors will be given with allotment on first-come, first serve basis. The company’s NCDs are well-accepted with all category of investors investing in the company’s NCDs. The company has privately placed Rs 7,180 crore of NCDs since July 1, 2016, and also successfully priced its masala bond of Rs 1,330 crore at 8.567 per cent and was the second housing finance company (HFC) in the country to have been able to do so.  Gagan Banga, Vice Chairman and Managing Director, Indiabulls Housing Finance, says, “It has been very encouraging to see the financial system recognising the vital role performed by HFCs in fulfilling the affordable housing agenda of the government.  The recent revision in limits for investment by SEBI for investment in HFCs and the new IRDA investment guidelines will also open up fresh limits for investments into HFCs by insurance companies and mutual funds. Our company is coming out with its public issue of NCDs which will help us in further diversify our borrowings, reduce our cost of funds and also take advantage of the growth opportunities which we foresee in the sector.”