Housing finance firm DHFL will issue bonds tomorrow to raise up to Rs 12,000 crore, largely for onward-lending to push growth. It is targeting 30 per cent growth in loan disbursements in the current financial year. DHFL had disbursed Rs 44,800 crore in the last financial year ended March 31.
In its bonds issue opening tomorrow, the company will offer up to 12 crore secured redeemable non-convertible debentures (NCDs) for Rs 3,000 crore with a green shoe option of up to Rs 9,000 crore. The issue is scheduled to close on June 4, with an option of early closure or extension as decided by the board of directors of the company or the NCD public issue committee, the company said at a conference here.
The allotment of bonds will be on first-come, first served basis, will come up in six series in a tenure ranging from 3, 5, 7, 10 years offering coupon rate of 8.56-9.10 per cent. To senior citizens, the company will offer an additional 0.10 per cent benefit on coupon rate, said Bharat Pareek, Head-Treasury, DHFL.
He said the company is very well capitalised, growing at a very consistent pace and been able to maintain is non-performing assets (NPAs) below 1 per cent due to strong collection network. “The launch of DHFL’s third public issue of NCDs at this critical phase of growth is set to provide a strong thrust to the company’s growth plans as we progress towards the next phase of high growth. It also allows us to diversify our borrowing portfolio,” said Pradeep Bhadauria, Business Head – Retail Liability.
In this bond issue, the company has also introduced a floater rate benchmarked to Overnight MIBOR. Investors in MIBOR (Mumbai Interbank Offered Rate) linked NCDs will receive interest based on overnight MIBOR rate compounded daily and payable annually.
“We are also offering an attractive interest rate of up to 9.10 per cent per annum, one-time additional incentive of up to 1 per cent to initial subscribers on maturity and an additional interest of 0.10 per cent per annum for senior citizens,” Bhadauria said. The minimum application amount is Rs 10,000 collectively across all options on NCDs and in multiples of one NCD after the minimum application.
