RELIANCE HOME FINANCE LIMITED TO RAISE RS 1,000CRORE (US$ 14.7 MILLION) AS BASE ISSUE SIZE, WITHAN OPTION TO RETAIN OVERSUBSCRIPTION
(L-R)- Mr. Ajay Manglunia, Edelwesiss Financial Services Limited, Mr. Sandip Prarik, CFO , RHFL, Mr. Ravindra Sudhalkar, CEO RHFL and Ms. Nipa Sheth , Trust Investment Advisor Private Limited.
S
ECURED NCDs RATED CARE AA+:STABLE AND BWRAA+:OUTLOOK STABLE UNSECURED NCDs RATED CAREAA:STABLE AND BWR AA:OUTLOOK STABLE
SECURED NCDs OFFERED FOR A TENURE OF 3,5 AND 10 YEARS AT COUPON RATE VARYINGFROM 8.7% TO 9.15 %
UNSECURED NCDs OFFERED FOR A TENURE OF15 YEARS WITH A CALL OPTION AFTER 10YEARS AT COUPON RATES VARYING FROM 9.25% TO 9.4%
NCDs TO BE LISTED ON BOTH NSE AND BSE
ISSUE OPENS ON THURSDAY, DECEMBER 22, 2016
Mumbai, December 22, 2016 (GPN) : Reliance Home FinanceLtd. (RHFL), a 100 per cent subsidiary of RelianceCapital and a part of Anil D. Ambani led Reliance Group,today announced its maiden public issue offeringSecured Redeemable Non-Convertible Debentures(Secured NCDs) and Unsecured Redeemable Non-Convertible Debentures (Unsecured NCDs).
The Company proposes to raise Rs 1,000 crore(US$14.7 million), as base issue size, by offeringSecured NCDs and Unsecured NCDs at a face value ofRs 1,000 each. The Unsecured NCDs will be in thenature of subordinated debt and will be eligible forinclusion as Upper Tier II Capital.
The NCDs will be issued in one or more tranches up tothe shelf limit, on terms and conditions as set out in theTranche 1 Prospectus.
The Company will use the amount for the purpose ofonward lending, financing, and for repayment/prepayment of interest and principal of existingborrowings and for general corporate purposes.
“India’s mortgage-to-GDP ratio is still low at 10% in 2015-16 compared with other developing countries but it hasimproved from 7.4% in 2009-10. The recent push by thegovernment to provide ‘Housing for All’ by 2022 andvarious steps taken to implement the same, areexpected to boost sales of affordable and low-costhousing units and consequently, financing for thesame”, said Mr Ravindra Sudhalkar, CEO, Reliance HomeFinance.
The Secured NCDs have been rated CARE AA+: Stableby Credit Analysis and Research Limited (CARE) andBWR AA+ Outlook: Stable by Brickwork Ratings IndiaPrivate Limited (Brickwork). These ratings indicate thatthe instruments are considered to have high degree ofsafety regarding timely servicing of financialobligations and carry very low credit risk**.
The Unsecured NCDs have been rated CARE AA:Stableby CARE and BWR AA Outlook: Stable by Brickwork. Theratings indicate that instruments are considered to havehigh degree of safety regarding timely servicing offinancial obligations and carry very low credit risk**.
The NCDs are being issued to Institutional, Non-Institutional, HNIs and Retail investors for a period of 3years, 5 years and 10 years for Secured NCDs and 15years for Unsecured NCDs with a call option after 10years.
The coupon rate for the NCDs for respective categoriesare:
|
|
CategoryI |
CategoryII |
CategoryIII |
CategoryIV |
|
|
Institutional Investors |
Non-Institutional Investors |
HNIInvestors |
RetailInvestors |
|
SECURED NCDs |
||||
|
SeriesI – 3Years |
8.70 |
8.70 |
8.90 |
8.90 |
|
SeriesII- 5Years |
8.90 |
8.90 |
9.05 |
9.05 |
|
Series– III 10Years |
9.00 |
9.00 |
9.15 |
9.15 |
|
|
||||
|
UNSECURED NCDs |
||||
|
SeriesIV- 15Years* |
9.25 |
9.25 |
9.40 |
9.40 |
Coupon in % per annum, payable annually.
*In the event our company does not exercise the call option after 10 years, astep-up of 25 bps above coupon shall be payable – as detailed in theprospectus.
The NCDs are proposed to be listed on BSE Limited (BSE)and the National Stock Exchange of India Limited (NSE).
RHFL provides a wide range of loan solutions likeHome loans, LAP, Construction finance and Affordablehousing. The Company also provides property solutions’services including property valuation, advisory servicesto real estate developers on debt syndication, fund raisingthrough equity, mergers and acquisitions, etc.
For the half year ended September 30, 2016, RHFLdisbursements were at Rs 3,342 crore (US$ 492.9 million)and the Assets Under Management were at Rs. 9,383crore (US$ 1.4 billion). The outstanding loan book ofRHFL, as on September 30, 2016, was Rs 7,905 crore (US$ 1.17 billion) – with 100% of the loan bookcontinuing to be secured. The Company has a largefootprint and its loan book is spread across 100locations through 43 branches.
The issue is being made pursuant to the provisions ofthe Securities and Exchange Board of India (Issue andListing of Debt Securities) Regulations, 2008 as amended(the “SEBI Debt Regulations”), the Companies
…
