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

Anil Ambani Group firm Reliance Home Finance said its maiden debenture issue 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 raised will be utilised for lending, financing, repayment of loans and general corporate purposes.

The company plans to raise Rs 1,000 crore as base issue size by offering secured and unsecured NCDs at a face value of Rs 1,000 each with an option to retain 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 per cent in 2015-16 compared with other developing countries but it has improved from 7.4 per cent in 2009-10,” Reliance Home Finance CEO Ravindra Sudhalkar said in statement.

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

A 100 per cent subsidiary of Reliance Capital, the company provides a wide range of loan solutions like home loans, loan against property and construction finance.

The NCDs are being issued to institutional, non- institutional, HNIs and retail investors for a period 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, Trust Investment Advisors and Yes Securities (India) Ltd are lead managers to the issue.

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