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Tata Capital Housing Finance plans to raise up to Rs 2,000 crore via NCDs

This is a maiden retail bond issue from the company. The base size of the issue is of Rs 500 crore with an option to retain an oversubscription up to Rs 1,500 crore

Press Trust of India  |  Mumbai 

Mutual funds give FEMA reporting a miss, await govt clarity on the issue

Housing Finance, the wholly-owned subsidiary of Ltd, on Monday said it is planning to raise up to Rs 2,000 crore through non-convertible debentures.

This is a maiden retail bond issue from the company. The base size of the issue is of Rs 500 crore with an option to retain an oversubscription up to Rs 1,500 crore.

The company is offering four bonds maturing in three, five, eight and 10 years, with coupon ranging between 7.92 per cent to 8.70 per cent. The bonds are giving a monthly and annual interest payment options to the subscribers.

Around 75 per cent of the fund raised through these bonds will be used for onlending, financing, repayment/ payment of debt and the balance for general corporate purposes.

"With a sharper focus on the affordable housing segment, we will seek growth opportunities in tier-II and III markets. We will continue to grow profitably," Housing Finance MD Anil Kaul said.

The company's borrowings comprise 43 per cent from banks, 20 per cent from the National Housing Bank and 15 per cent from bonds. The issue will open for subscription on January 7 and closes on January 17. The bonds have been rated AAA by Crisil and Icra. Lead managers to the issue are AK Capital and Edelweiss Financial Services.

The housing finance company focuses primarily on providing affordable home loans, home equity and construction finance. As of September-end, gross non-performing assets were Rs 400.59 crore or 1.45 per cent, and net NPAs at Rs 145.06 crore or 0.53 per cent.

First Published: Mon, January 06 2020. 17:35 IST
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