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Mortage lender Dewan Housing Finance Corporation (DHFL) will open its ₹12,000-crore non-convertible debenture (NCD) issue for subscription on May 22.
DHFL is offering investors the option to invest in NCDs of three, five, seven and 10 years’ duration, with coupon rates in the range of 8.9 to 9.10 per cent.
The issue is scheduled to close on June 4.
The NCD issue has a base issue size of ₹3,000 crore, with an option to retain oversubscription of ₹9,000 crore. The debentures will be listed on the NSE and the BSE.
This is the company’s third public issue of bonds. In April this year, the company had raised ₹1,000 crore through masala bonds.
About 75 per cent of the net proceeds of the public issue of NCDs, the largest to have hit the capital markets so far, will be used for onward lending, financing, repayment/prepayment of interest and principal of existing borrowings of the company, and the balance would be used for general corporate purposes.
Kapil Wadhawan, Chairman and Managing Director of DHFL, said: “The launch of our third public issue of bonds 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.”
Last fiscal, the company raised ₹35,000 crore through bond issuances, and incremental disbursement was close to ₹45,000 crore.
Lead managers are YES Securities (India), Edelweiss Financial Services, AK Capital Services, Axis Bank, Green Bridge Capital Advisory Private, SBI Capital Markets and Trust Investment Advisors, among others.
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