Indiabulls Housing Finance Limited announces Public Issue of

Indiabulls Housing Finance Limited announces Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs)

Tranche I Issue to Open on December 09; Effective Yield up to 9.26% p.a.*

·         The Tranche I NCD issue includes a Base Issue Size of Rs.200 crores with an option to retain oversubscription up to Rs 800 crore aggregating up to Rs. 1,000 crores

·         Rated as CRISIL AA/Stable by Crisil Ratings Limited and BWR AA+/Stable by Brickwork Ratings India Private Limited

·         Effective annualized yield up to 9.26% p.a#.

·         The Tranche I Issue opens on December 09, 2021 and closes on December 20, 2021*

·         Trading in dematerialized form only

·         Allotment on date priority basis i.e. on first -come- first-serve-basis, based on the date of upload of each application into the electronic system of the Stock Exchange, in each Portion subject to the Allocation Ratio.

·         The NCDs are proposed to be listed on BSE Limited and National Stock Exchange of India Limited (collectively, the “Stock Exchanges”).

Indiabulls Housing Finance Limited, a housing finance company regulated by National Housing Bank, has announced the issue of secured, redeemable, non-convertible debentures of the face value of Rs. 1,000 each. The Issue opens on December 09, 2021 and closes on December 20, 2021 with an option of early closure.

The Issue has a base issue size of Rs. 200 crores with an option to retain oversubscription up to Rs 800 crores, aggregating up to Rs. 1,000 crores. The NCDs are proposed to be listed on the Stock Exchanges with BSE Limited as the Designated Stock Exchange for the Issue. The NCDs have been rated CRISIL AA/Stable by CRISIL Ratings Limited and BWR AA+ (pronounced as Brickwork double A plus rating with stable outlook) by Brickworks Ratings India Private Limited.

The NCDs issued pursuant to the Issue  have a tenure of 24 months, 36 months, and 60 months. Effective yield (per annum) for NCD holders in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from 8.35% to 8.76% and for NCD holders in Category III (HNI Investors) and Category IV (Retail Individual Investors) ranges from 8.75% to 9.26%. Frequency of Interest payments are Annually, Monthly or Cumulative as per the choice of investors. Amount on maturity for NCD holders in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from Rs 1,174.00 to Rs 1277.60 per NCD for Series II and Series V respectively and for Category III (HNI Investors) and Category IV (Retail Individual Investor) ranges from Rs 1,182.70 to Rs 1295.35 per NCD for Series II and Series V respectively.

Net proceeds of the Issue will be utilized for the purpose of onward lending, financing, and for repayment of principal and interest of existing borrowings of the Company (at least 75%) - and the rest (up to 25%) for general corporate purposes.

As per its Limited Review Financial Results for the six months ended September 30, 2021, IBHFL’s CRAR (capital adequacy ratio) stood at 21.68% on a standalone basis. The terms of each series of NCDs, offered under Tranche I Issue are set out below:

The Lead Managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited and Trust Investment Advisors Private Limited.

# For further details please refer Shelf Prospectus dated December 3, 2021 and Tranche I Prospectus dated December 3, 2021

*Tranche I Issue may close on such earlier date or extended date as may be decided by the Board of Directors of our Company or Securities Issuance Committee thereof. In the event of an early closure or extension of the Tranche I Issue; our Company shall ensure that notice of the same is provided to the prospective investors through an advertisement on or before such earlier or extended date of Tranche I Issue Closure in which pre-issue advertisement and advertisement for opening or closure of the Tranche I Issue have been given.

 

Indiabulls Housing Finance Limited announces

Indiabulls Housing Finance Limited announces ₹ 1,000 crore Public Issue of Secured and/or Unsecured Redeemable Non-Convertible Debentures (NCDs)

·         Coupon Rate of up to 9.75% per annum*

·         Security cover of 1.25 times on the principal amount and interest thereon

·         Tranche I Issue rated as ‘CRISIL AA/Stable (double A: Stable) by CRISIL Ratings Limited and BWR AA+/Negative (double A plus/Negative) by Brickworks Ratings Pvt Ltd

·         Tranche I Issue opens on September 06, 2021 and closes on September 20, 2021**

·         Trading in dematerialized form only

·         Allotment on first -come- first-serve-basis

·         The NCDs are proposed to be listed on BSE and NSE

Indiabulls Housing Finance Limited, a housing finance company regulated by the Reserve Bank of India, has announced the public issue of secured/ and or unsecured, redeemable, non-convertible debentures of the face value of Rs. 1,000 each. The Tranche I Issue opens on September 06, 2021 and closes on September 20, 2021.

The Tranche I Issue has a base issue size of Rs. 200 crores with a green shoe option up to Rs. 800 crores, aggregating up to Rs. 1,000 crores (“Tranche I Issue”). The Tranche I Issue offers various options for subscription with coupon rates ranging from 8.05% to 9.75% per annum. There are 10 Series of NCDs carrying fixed coupon and having tenures ranging 24 months, 36 months, 60 months and 87 months with annual, monthly and cumulative option.

The NCDs are proposed to be listed on BSE and NSE (collectively, “Stock Exchanges”) with BSE as the Designated Stock Exchange for the Issue. The NCDs have been rated CRISIL AA/Stable by CRISIL Ratings Limited and BWR AA+ / Negative by Brickwork Ratings India Private Limited.

An additional incentive maximum of 0.25% p.a. will be offered for Category III (HNI) and Category IV (Retail) Investors in the proposed Issue, who are also holders of NCD(s)/ Bond(s) previously issued by the Company, and/ or its Subsidiaries as the case may be, and/or are equity shareholder(s) of Indiabulls Housing Finance Limited as the case may be on the deemed date of allotment.

The Lead Managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited and Trust Investment Advisors Private Limited.

At least 75% of the funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Tranche I Issue. The unsecured NCDs are in the nature of subordinated debt and will be eligible for Tier II capital.

Indiabulls Housing Finance Limited announces its

Indiabulls Housing Finance Limited announces
its Q4 and FY21 Financial Results

Q4 FY21 PAT of ₹ 276 Cr, up 102% YoY

Final Dividend of ₹ 9.0 per share for FY21 declared

 

The Board of Directors of Indiabulls Housing Finance Ltd. (IBH) announced its audited financial results for the quarter and year ended March 31^st 2021.

 

IBH Key Financials:

 

Particulars	Q4 FY20-21	Q4 FY19-20
Loan Book	₹ 66,047 Cr	₹ 73,065 Cr
CRAR	30.7%	27.1%
Tier 1	24.0%	20.3%
Net Gearing	3.4x	4.0x
PAT	₹ 276 Cr	₹ 137 Cr

 

 

The Company’s Board of Directors has declared a final dividend of ₹ 9 per share in the board meeting held on May 19, 2021

Highlights: ·   PAT for Q4FY21 is ₹ 276 Cr – a growth of 102% YoY over Q4FY20 PAT of ₹ 137 Cr ·   PAT for FY21 is ₹ 1,202 Cr ·   Stable Net NPA at 1.59%. Provisions at 2.7x of regulatory requirements. Provisions to loan book at a very healthy 3.7% ·   Capital adequacy stands at 30.7% and Tier 1 at 24.0% ·   Net gearing has moderated to 3.4x ·   Cost to Income ratio declined to 12.8% in FY21 from 16.2% for FY20 on the back of measures taken to improve cost efficiency ·   Revision in credit rating outlook after 2 years. Long term credit rating revised to AA [Stable outlook] from AA [Negative outlook] by CRISIL, an S&P Global Company. Cost of funds to come down. ·   The Company entered into a co-lending agreement with HDFC Ltd., the Country’s largest housing finance company, for sourcing home loans ·   Access to funding has normalised. In FY21, IBH has raised total funding of over ₹ 34,000 Cr

CRISIL revises rating outlook

CRISIL, an S&P Global Company, revised the Company’s outlook to Stable from Negative. The long-term credit rating of IBH was reaffirmed at “CRISIL AA” and the short-term credit rating was reaffirmed at the highest rating of “CRISIL A1+”. CRISIL took into account the Company’s demonstrated ability to raise equity and debt capital in tough macro-economic circumstances, its comfortable asset quality in retail segments and lower than expected rise in NPA levels, regularization of collection efficiency to pre-COVID levels, strong capitalization with healthy cover for asset-side risks and strong liquidity position in revising the rating outlook of the Company to stable.

 

Co-Lending Tie-Up

The Company entered into a strategic co-lending partnership with HDFC Ltd to offer housing loans to homebuyers at competitive rates.

IBH will originate retail home loans as per jointly drawn up credit policy and retain 20% of the loan on its books and 80% will be on HDFC’s books. IBH will service the loan account throughout the life cycle of the loan and will earn a trail income over the life of the loan.

Integration with HDFC Ltd will give IBH the benefit of a large franchise, scale and a robust credit appraisal process. It will give IBH the ability to price home loans for the entire spectrum of customers and go behind the entire market. The partnership will act as a cornerstone to IBH’s new balance-sheet light growth business model. Moreover, technology led co-lending will help IBH offer convenient and seamless experience to its customers as well as help expand its reach to Tier III and IV towns of the country.  

 

Funding flow has normalized

Access to funding has normalised. The Company’s funding costs have moderated with incremental funds being raised at sub 8.0% p.a. levels. This has helped bring down Company cost of funds on books to 8.5%. The Company’s spread on book has expanded to 2.7%. In addition to availing funds at decreasing costs, the Company is also raising large sums of long term monies, of over 5 years tenure, which bodes well for its ALM. Overall, in FY21, the Company has raised over ₹ 34,000 Cr through equity, bank lines, bonds and loan sell downs. 

 

 

Mr. Gagan Banga, Vice Chairman, MD & CEO, IBH commented that,

 

“Through FY21, our balance sheet has been strengthened through equity capital raises, our asset quality is stable and we are adequately provided, our liquidity levels remain strong and we have a fully matched ALM, our credit ratings were also revised to stable outlook. In FY22, with our co-lending partnerships in place, especially the one with HDFC Ltd, we are now set to grow the retail loan book and grow profitability through our technology-leveraged, retail focused asset-light business model”