Mumbai, September 12, 2016 ( GPN ) :
Indiabulls Housing Finance Limited (“Company” or “Issuer”), is one of the largest housing finance companies in the country with a market capitalization of over Rs. 35,000 crs (As at 30th August 2016) and PAT of Rs. 2,345 crs (For the Year ended 31st March 2016). 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 crores of NCDs since 1st July 2016 and also successfully priced its masala bond of 1,330 crs at 8.567% and was the second housing finance company (HFC) in the country to have been able to do so.
The company is now coming up with a public issue of secured and unsecured redeemable non-convertible debentures (NCDs) opening on 15th September 2016.
(Left to Right) : Mr. Vishal Mahajan, YESSecurities Limited, Ajay
Manglunia, Edelweiss Financial Services Limited, Mr. Ashwini Omprakash Kumar
Deputy Managing Director/ Executive Director, IBHFL, Gagan Banga
Vice Chairman and Managing Director, IBFSL, Mr. Ajit Mittal , ED, IBHFL, Mr. Ashish Sable, Sr. Vice President, SBI Capital Market Limited
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% to 9.15% p.a.
Additional 10 bps for Senior Citizens investing in Retail category
Options of 3, 5 and 10 years tenor for Secured NCDs and 10-years for Unsecured NCDs
Monthly, Cumulative and Annual options for Investors
Allotment of first-come, first serve basis
The rating of NCDs by CARE and Brickwork indicate that instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
The base issue is of Rs. 3,500 crores with an option to retain over-subscription of up to
Rs. 3,500 crores, hereinafter referred to as the “issue”. 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.
Mr. GaganBanga, Vice Chairman & MD, Indiabulls Housing Finance Limited said, “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.”
Issue Structure with Fairly Attractive Yields:
Investor Categories:
Category I – QIB
Category II – Corporate
Category III – HNI
Category IV – Retail
Effective Yields
QIB & Corporate (Category I and II)
3 Years – 8.55%
5 Years – 8.75%
10 Years – 8.85%
10 Years Unsecured – 9.00%
HNI (Category III)
3 Years – 8.65%
5 Years – 8.90%
10 Years – 9.00%
10 Years Unsecured – 9.15%
Retail (Category IV)
3 Years – 8.70%
5 Years – 8.90%
10 Years – 9.00%
10 Years Unsecured – 9.15%
Additional 10 bps for Senior Citizens across all tenures
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.
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, Trust Investment Advisors Private Limited are the lead managers to the issue.
IDBI Trusteeship Services Limited is the Debenture Trustee, while Karvy Computershare Private Limited is the Registrar to the Issue.
Investors have an option to apply for NCDs in dematerialized as well as physical form.
