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Saturday, December 07, 2013

India Infoline Housing Finance Ltd: 11.52% secured NCDs issue opens on Dec 12

India Infoline Housing Finance Limited (IIHFL), the housing finance arm of India Infoline Limited, one of the largest diversified financial services companies in India, plans to open on December 12, 2013 a public issue of Secured, Redeemable, Non-Convertible Debentures (NCDs) of face value of Rs 1,000 each.
The NCD issue is aggregating upto Rs 2,500 million with an option to retain over-subscription up to Rs 2500 million for issuance of additional NCDs aggregating to a total of up to Rs 5,000 million (“Issue”)
These NCDs have a monthly option and will be issued for a period of 5 years. The yield on the NCD works out to 12.15% p.a. These bonds are secured against home and mortgage receivables.
Our recent NCD issue of India Infoline Finance Limited, parent company of IIHFL, raised Rs 1,050 crores, including the green shoe option. This was the largest public issue of bonds, by any company in India, in the last 4 years (as per Prime Database).
Commenting at the press conference on the NCD Issue, Nirmal Jain, Chairman, India Infoline Ltd said, “This is the fourth issue from IIFL Group in the last 3 years. All our earlier issues have met with overwhelming response and customer’s trust. In the corporate bond market, IIFL brand is well accepted and has an impeccable track record. ”
S Sridhar, Chairman, India Infoline Housing Finance Limited, said, “Our robust credit selection, appraisal and collection process have ensured that the asset quality standards are among the highest and non performing assets are kept under control at a low level.”
R Venkataraman, Managing Director, India Infoline Ltd said, “These bonds are secured against home and mortgage receivables, which in the Indian context have performed better than most other asset classes. These bonds have an attractive yield of 12.15% with an added benefit of monthly cash flow of interest income.”
The NCDs proposed to be issued under this Issue have been rated ‘CRISIL AA-/Stable’ by CRISIL and ‘CARE AA-' by CARE. The rating of NCDs by CRISIL and CARE indicates instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The ratings provided by CRISIL and/or CARE may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. The NCDs are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
The Issue will close on December 20, 2013 with an option to close on such earlier date or extended date up to a period of 30 days from the date of opening of the Issue, as may be decided at the discretion of the duly authorised committee of Directors of IIHFL subject to necessary approvals.
Investors have an option for Allotment of NCDs in both dematerialized form and/or physical form. The funds raised through the Issue, after meeting the expenditures of and related to the Issue, will be used for the financing activities including lending and investments, subject to applicable statutory and/or regulatory requirements, to repay our existing loans and our business operations including for our capital expenditure and working capital requirements.
Axis Capital Limited, Trust Investment Advisors Private Limited, India Infoline Limited and Edelweiss Financial Services Limited are the Lead Managers to the Issue and RR Investors Capital Services (P) Limited, Karvy Investor Services Limited and SMC Capitals Limited are the Co-Lead Managers to the Issue. IDBI Trusteeship Services Limited is the Debenture Trustee, while Link Intime India Private Limited is the Registrar to the Issue.