Tata Capital Housing Finance Plans To Raise Rs 2,000 Crore Via NCDs

Tata Capital Housing Finance, a subsidiary of Tata Capital, on Thursday said it is looking to raise up to Rs 2,000 crore through non-convertible debentures.

The base size of the issue is Rs 500 crore with an option to retain oversubscription up to Rs 1,500 crore, the company said.

There are four bonds maturing in three, five, eight and 10 years with monthly and annual interest payment options. The coupons offered by the company are in the range of 7.92-8.70 percent under various interest payment options.

It will use the funds raised for onward lending, financing and repayment/prepayment of existing borrowings. The issue will open for subscription on Jan. 7 and is scheduled to close on Jan. 17.

The bonds have been rated ‘AAA’ by Crisil and ICRA.

The lead managers to the issue are AK Capital and Edelweiss Financial Services. The housing finance company offers long-term funds for housing purposes.

It offers loans for purchase and construction of a residential unit, purchase of land, home improvement loans, home extension loans, and project finance loans to developers, among others.

For the half year ended Sept. 30, 2019, the company reported a net profit of Rs 23.7 crore as against Rs 17.92 crore in the year-ago period.

Earlier in the day, Shriram Transport Finance said it is looking to raise up to Rs 1,000 crore through bonds.

The base size of its issue is Rs 200 crore with an option to retain oversubscription aggregating up to Rs 1,000 crore, the company said in a release.

In the second tranche of bonds, STFC It is offering three- and five-year bonds with monthly, annual and cumulative interest payment options and seven-year bonds with monthly and annual interest payment options.

The bonds will be offering a coupon in the range of 8.52-9.10 percent under various interest payment options. The tranche-II issue will open for subscription on Jan. 6 and is scheduled to close on Jan. 22.