The Hindu Business Line : Birla Home Fin securitises retail housing loans

BIRLA Home Finance Ltd (BHFL), a joint venture between Chambal Fertilisers and Chemicals Ltd and BHW Holding AG of Germany, has securitised its retail home loans at a premium of Rs 9.277 crore.

The Residential Mortgage-Backed Securitisation (RMBS) transaction of BHFL was completed by National Housing Bank (NHB), with the issue being the tenth RMBS of the latter.

The RMBS issue of BHFL involves a pool of individual housing loans amounting to Rs 34.38 crore offered to investors at a premium of Rs 9.27 crore. The premium pricing structure involves two classes of Pass Through Certificates configured in a senior-subordinated manner.

The securitisation process involved assignment of the housing loans by BHFL in favour of NHB, with the latter constituting a Special Purpose Vehicle (SPV) in the form of a Trust for holding the housing loans.

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