Connect with us

Business

Indiabulls Housing Finance raises $165 million via offshore papers

Published

on

Indiabulls Housing Finance raises $165 million via offshore papers

MUMBAI: raised about $165 million selling five-year convertible bonds to overseas investors, two people familiar with the matter told ET.

Back home, the home financier will likely utilise the proceeds for onward lending. The debt papers likely offered 4.5 percent. They will have a ‘put’ option at the end of three years giving investors an opportunity to exit before the scheduled maturity, sources said.

Deutsche Bank, CLSA, Edelweiss UK and Elara Capital helped the company raise the funds. Individual bankers could not be contacted immediately for comments. Indiabulls Housing did not immediately respond to ET’s query.



The bonds are supposed to be listed on the Singapore Stock Exchange and marked as high-yield securities, below the investment grade.

“A meeting of the Securities Issuance Committee of the board of the directors of the Company is scheduled to be held on September 21, 2021, to consider and approve, amongst other things, the issue price and other terms of the FCCBs,” the company said in a separate exchange filing on Thursday.

Indiabulls Housing Finance has set a target to disburse Rs 2,000 crore worth of home loans every month by end of this fiscal year. It is currently disbursing about Rs 800 crore every month.

The company has also been focussing on co-lending partnerships. A few days ago, Punjab & Sind Bank (PSB), a state-owned bank, entered into a strategic co-lending alliance with Indiabulls Commercial Credit and Indiabulls Housing Finance (IHFL) for MSME and priority sector home loans.

At the beginning of the fiscal year, Housing Development Corporation of India (HDFC Ltd), had entered into a similar partnership with Indiabulls Housing.

Earlier in the month, the housing finance company launched its sale of local bonds through a public issue. It remains open for subscription with the borrower garnering about Rs 591 crore for now.

“We can see credit demand coming up with increasing vaccination drive,” Gagan Banga, managing director at Indiabulls Housing Finance had told ET on September 1.

Indiabulls Housing Finance reported a 3.2 percent rise in its consolidated net profit to Rs 282 crore during the April-June quarter.

Main Article
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor.