Aadhar Housing Finance Ltd. to raise up to Rs 1,400 crore through NCDs issues to open from Sept. 14, 2018

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Aadhar Housing Finance Limited announced the launch date of the secured redeemable non-convertible debentures (NCDs) of face value of Rs. 1,000 from September 14, 2018. The face value of the NCDs would be Rs. 1000 and in multiples. The base size of the issue is Rs 500 crore, with an option to retain over subscription up to Rs 900 crore. With an aggregation up to Rs. 1400 cr. The company is offering an annual coupon rate of 9.60 percent, 9.65 percent and 9.75 percent on the three, five and 10-year bonds, respectively.

The base size of the issue is Rs 500 crore, with an option to retain over subscription up to Rs 900 crore. The company is offering an annual coupon of 9.60 percent, 9.65 percent and 9.75 percent on the three, five and 10-year bonds, respectively.

While addressing the media Shri Deo Shankar Tripathi, managing director and chief executive officer, AHFL. Said that around 75 percent of the proceeds 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. The company also has an approval to raise up to Rs 3,000 crore through bonds, and this is the first tranche. The NCDS will be listed on BSE Limited.

The issue is rated by CARE Ratings & Brickwork Ratings India: with an outlook: Stable and rated CARE AA+ (SO) pronounced as CARE Double A plus structures obligation, for an amount of Rs. 3,000 crore. Out of the company’s total borrowing portfolio, 68 percent 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 allotment process is on a first-come-first-serve basis.  The average ticket size and incremental ticket size for housing loans is Rs 8.22 lakh and Rs 8.99 lakh, respectively. It has a presence in 20 states, with 272 branches.

The company have a diverse customer groups with focus on salaried (both formal and informal) as well as self-employed.

Shri Tripathi sounded that this issues is an ideal for all types of investors as the current bank FDs are much lower rate of interest compared to the NCDs.

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