Mumbai: Aadhar Housing Finance (AHFL) Monday said it is planning to raise up to ₹ 1,400 crore through non-convertible debentures (NCDs), maturing in three, five and 10 years. The base size of the issue is ₹ 500 crore, with an option to retain over subscription up to ₹ 900 crore.
The company is offering an annual coupon of 9.60%, 9.65% and 9.75% on the three, five and 10-year bonds, respectively. The issue will open on 14 September and close on 28 September.
“At least 75% of the proceeds of the issue will be used for lending, financing and repayment of interest and principal of existing borrowings of the company. The balance will be used for general corporate purposes," said Deo Shankar Tripathi, managing director and chief executive officer, AHFL.
The deposit taking housing finance company has an approval to raise up to ₹ 3,000 crore through bonds, and this is the first tranche.
Out of the company’s total borrowing portfolio, 68% is from banks and the balance consists of bonds, refinance from the National Housing Bank, fixed deposits and commercial papers.
AHFL provides affordable housing financing products to economical weaker section and low-income group in small cities and towns.
The average ticket size and incremental ticket size for housing loans is ₹ 8.22 lakh and ₹ 8.99 lakh, respectively. It has a presence in 20 states, with 272 branches.