Indiabulls Housing Finance's maiden NCD to kick off on 15 September

Top Quote Indiabulls Mutual Fund is a SEBI registered Mutual Fund of India . Indiabulls Mutual Fund has been established as a Trust with Indiabulls Housing Finance Limited as its Sponsor and Indiabulls Trustee Company Ltd as its Trustee. Indiabulls AMC offers best liquid mutul funds investment in India. End Quote
  • (1888PressRelease) September 17, 2016 - New Delhi: Indiabulls Housing Finance Ltd on Monday announced its first public issue of secured and unsecured redeemable non-convertible debentures (NCD) for a total amount of Rs.3,500 crore, with an option to retain over-subscription up to Rs.3,500 crore.

    The company aims to use the net proceeds towards "lending, financing, and repayment of interest and principal of existing borrowings", according to the prospectus.

    The company has privately placed Rs.7,180 crore of NCDs since July. It has also raised Rs.1,330 crore through masala bonds at an interest rate of 8.56%.

    Indiabulls Housing Finance is the second housing finance company to raise funds through masala bonds after Housing Development Finance Corp. Ltd (HDFC), which raised Rs.3,500 crore in two rounds.

    In the past three months, Dewan Housing Finance Ltd (DHFL) and Edelweiss Housing Finance, a group company of the Edelweiss Group, have also raised Rs.14,000 crore and Rs.500 crore, respectively, through NCDs.

    The secured NCD comes with an option of three-, five- and 10-year tenures whereas unsecured NCDs have a tenure of 10 years. The annual yield ranges from 8.55% to 9.15% with monthly, cumulative and annual options for investors.The bonds are rated AAA by Care and Brickwork Rating.

    "There is a falling interest rate scenario and this combined with higher rating of bonds can lead to good capital gains. Looking at the success of masala bonds, we will be frequent issuers of it," said Gagan Banga, vice chairman and managing director of Indiabulls Housing Finance.

    The issue opens on 15 September and will close on 23 September.

    Yes Securities (India) Limited, Edelweiss Financial Services Limited, A.K. Capital Services Limited, Axis Bank Limited, IIFL Holdings Limited, IndusInd Bank Limited, SBI Capital Markets Limited, and Trust Investment Advisors Private Limited are the lead managers to the issue.

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