Indiabulls Housing Finance Ltd on Monday said it would issue up to Rs 7,000 crore through a public issue of bonds starting Thursday.
The proceeds 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 company said.
The base issue size is Rs 3,500 crore, with an option of retaining an additional Rs 3,500 crore of subscription. The issue will remain open till September 23. The company recently raised Rs 1,330 crore through masala bonds at 8.567 per cent, the third Indian company to do so.
The non-convertible debentures (NCDs), with coupons ranging from 8.55 per cent to 9.15 per cent, have been rated AAA by CARE and Brickwork rating agencies. There would be an additional 10 basis points of coupons for senior citizens investing in the retail category.
The secured NCDs will have maturities of three, five and 10 years and the unsecured NCDs will have tenure of 10 years. Investors will have the options to choose from monthly, cumulative and annual payment of coupons, the housing finance company said.
“Our company is coming out with its public issue of NCDs which will help us in further diversifying our borrowings, reduce our cost of funds and also take advantage of the growth opportunities which we foresee in the sector,” said Gagan Banga, vice-chairman & MD, Indiabulls Housing. YES Securities Ltd, Edelweiss Financial Services Ltd, A K Capital Services Ltd, Axis Bank Ltd, IIFL Holdings Ltd, Indus Ind Bank Ltd, SBI Capital Markets Ltd and Trust Investment Advisors Private are the lead managers to the issue.
