Indiabulls Housing to foreclose NCD issue Friday

Indiabulls Housing Finance Ltd (IBHFL) today said it will foreclose its Rs 7,000 crore fund raising plan via NCDs tomorrow owing to an overwhelming response.
"The company saw an overwhelming response with more than 190 per cent subscription on the base issue of Rs 3,500 crore. The company has decided to close its public issue of NCDs on Friday 16th September 2016, the second day since opening," it said in a regulatory filing.
The issue, which was opened today, was supposed to close on September 23, 2016.
Earlier this week, the company had announced to raise Rs 3,500 crore with green shoe option to retain over-subscription upto the same amount aggregating to Rs 7,000 crore through public issue of non-convertible debentures (NCDs).

Offering secured and unsecured bonds with interest rates ranging from 8.55-9.15 per cent 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, the company said.
"We thank our investors for placing their trust on us. 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," sad Gagan Banga, Vice Chairman and Managing Director, IBHFL.

The company has raised Rs 7,180 crore by issuing NCDs on a private placement basis since July 2016.

It is the second housing finance company to have raised masala bonds of Rs 1,330 crore at over 8.56 per cent, recently.
The proceeds raised through this issue will be used for onward lending, financing, and repayment of interest and principal of existing borrowings of the company and other general corporate purposes.
HDFC Ltd, country's biggest mortgage lender, the first company to have raised money through masala bonds has so far raised an amount of Rs 4,500 crore through such instruments which are rupee denominated bonds floated for overseas investors.
Shares of IBHFL closed 0.87 per cent down at Rs 786.40 on BSE.