Mumbai : Indiabulls Housing Finance on Wednesday said it has raised Rs 1,330 crore through a three-year masala bond sale to international investors, making it the second home finance company after market leader HDFC to raise funds through this route.
The proceeds from the unrated issue, which is the company’s first, will be used to fund affordable housing projects as well as for general corporate purposes, it said in a statement.
Being an unrated instrument, the company had to price the 37-month issue at 8.57 per cent. Against this, HDFC’s Rs 3,000-crore issue last month with same maturity was priced much lower at 7.975 per cent.
The masala bonds, which are rupee-denominated bonds issued to overseas investors, will be listed on the Singapore Stock Exchange, the company said.
Its Vice-Chairman and Managing Director Gagan Banga said this issue opens up a vast pool of debt capital for the company and diversifies the funding profile away from bank term loans.
In the first five months of the current fiscal year, the company has issued Rs 11,000 crore of bonds, compared to Rs 9,900 crore in the whole of last fiscal, he said.
