Friday, September 16, 2016
Indiabulls Housing Finance Limited, a laeding housing finance company of the country saw an overwhelming response with more than 190% subscription on the base issue of Rs. 3500 crore. The company has decided to close its public issue of NCDs on Friday September 16, 2016, the 2nd day since opening and nearly a week ahead of the scheduled closure on September 23, 2016.
The issue opened to an overwhelming response with a base issue of Rs. 3500 crore, and the option to retain an equal amount from oversubscription. The issue had been oversubscribed by over 138% within minutes. Offering secured and unsecured bonds with interest rates ranging from 8.55%-9.15% for 3-year, 5-year and 10-year tenures, Indiabulls Housing Finance has leveraged its strong credit position to attract investors to buy into stable and appreciating investments.
Extremely encouraged by the response on the first day, Gagan Banga, Vice Chairman and Managing Director, Indiabulls Housing Finance Limited said, “We thank our investors for placing their trust on us. We uphold the value of our stakeholders above all else and will ensure greater value for them. This issue will not only diversify our borrowing portfolio, but it places us perfectly to launch forward and capitalize on a period of immense potential ahead.”
The company has since 1st July 2016 privately placed Rs. 7,180 crores of NCDs. Indiabulls Housing Finance is also only the second housing finance company to have raised masala bonds of 1,330 cr at 8.567%, recently. The NCDs have been rated as “CARE AAA” by CARE and “BWR AAA” by Brickwork.
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.
IDBI Trusteeship Services Limited is the Debenture Trustee, while Karvy Computershare Private Limited is the Registrar to the Issue.