Tuesday , November 21 2017

Reliance Home Finance to raise Rs 3,500 crore via NCDs

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NEW DELHI: Anil Ambani Group organization Reliance Home Finance today stated its first debenture topic worth up to Rs 3,500 crore will open on December 22.

The public issue will open on December 22 and close on January 6 while the money elevated will be utilized for lending, financing, repayment of loans and general corporate commitments.

The Anil Ambani Group plans to raise Rs 1,000 crore as base matter size by offering secured and unsecured NCDs at a face value of Rs 1,000 each with a choice to recall over-subscription. It is looking to raise about Rs 3,500 crore through secured and unsecured non-convertible debentures (NCDs).

“India’s mortgage-to-GDP ratio is still low at 10 % in 2015-16 related with other developing countries but it has upgraded from 7.4 per cent in 2009-10,” Reliance Home Finance CEO Ravindra Sudhalkar stated in a statement.

“The recent push by the government to provide ‘Housing for All‘ by 2022 and several steps taken to implement the same, are expected to boost sales of reasonably priced and low-cost housing units and consequently, financing for the same,” he added.

A 100 % subsidiary of Reliance Capital BSE -1.35 %, the company offers a wide range of loan solutions like home loans, loan against property and construction finance.

The NCDs are being allotted to institutional, non- institutional, HNIs and retail investors for a span of 3 years, 5 years and 10 years for secured NCDs and 15 years for unsecured NCDs with a call option after 10 years.

NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.

Edelweiss Financial Services, A K Capital Services, Axis Bank BSE -1.26 %, Trust Investment Advisors and Yes Securities (India) Ltd are lead managers to the subject.

For the half year ended September 30, 2016, Reliance Home Finance Ltd (RHFL) expenses were at Rs 3,342 crore and the assets under management were at Rs 9,383 crore.

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