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Reliance Home Finance, wholly owned subsidiary of Reliance Capital, on Tuesday launched its maiden public issue of secured and unsecured non-convertible debenture at a face value of ₹1,000 each. The company plans to raise ₹1,000 crore as base issue size with an option to retain oversubscription up to the shelf limit of ₹3,500 crore (₹3,000 crore being the secured NCDs).
The secured NCDs are offered at a coupon rate ranging from 8.7 to 9.15 per cent for tenures of three, five and 10 years. The unsecured NCDs are offered at a coupon rate varying from 9.25 per cent 9.4 per cent for a tenure of 15 years. These come with a call option exercisable after 10 years. Rating agencies CARE and Brickwork have given stable outlook rating to both NCDs.
The issue opens on Thursday and closes on January 6. Edelweiss, AK Capital Services, Axis Bank, Trust Investment Advisors and YES Securities are lead managers of the issue. The NCDs will be listed on the NSE and the BSE.
The company will use the funds for the purpose of lending, financing, and repayment/ prepayment of interest and principal of existing borrowings and for general corporate purposes. Post-issue of the NCDs, the share of bank borrowings in Reliance Home Finance’s funds at around 62 per cent is expected to come down to 55 per cent.
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