Mahindra Rural Housing Finance to raise Rs 1,900cr via bonds

The company provides home loans primarily in rural areas

Mahindra Rural Housing Finance today said it will raise Rs 1,900 crore by issuing bonds on private placement basis.

"Board of Directors has approved the issue of secured and/or unsecured non-convertible debentures including subordinated debentures for an aggregate amount not exceeding Rs 1,900 crore on a private placement basis", the company said in a regulatory filing.

Mahindra Rural Housing Finance Limited (MRHFL), a subsidiary of Mahindra and Mahindra Financial Services Limited (MMFSL) provide home loans primarily in rural areas.

Since inception in April 2007, MRHFL opened operations in nine states: Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Bihar.

MMFSL holds 87.5% of the equity of MRHFL and the National Housing Bank, the fully owned subsidiary of the Reserve Bank, holds the remaining 12.5 per cent.