IIHFL looks to raise up to Rs.200 cr through bond issue

Housing finance company India Infoline Housing Finance Limited (IIHFL) announced the launch of a public bond issue looking to raise up to Rs.200 crore at a conference earlier in the day.

The issue opens on March 12 and closes on March 24, according to the offer document. It aims to raise Rs.100 crore with the option to absorb oversubscription of another Rs.100 crore.

The document added that the bonds have a coupon of 12%, and a tenure of six years.

S. Sridhar, chairman, IIFL Housing Finance, said the capital will help add to the company's capital base.

"We will focus on growing out home loan and mortgage assets while keeping a close eye on the quality of assets. The issue of NCDs will further enable us to improve our Asset Liability profile and strengthen the capital base," he said in a press release.

R Venkataraman, Managing Director, IIFL said that the issue could be used by investors looking to invest in fixed income.

"As part of prudent asset allocation, investors should have exposure to fixed income. The issue offers attractive options for retail investors seeking regular cash flows," he said in the same press release.

India Infoline Housing Finance business operations include housing loans and providing loans against property. The company had a profit after tax of Rs.13.96 crore for the financial year ending in March 2013.

The bond has been rated AA- with a stable outlook by rating agencies CRISIL and ICRA.