Mortgage lender Dewan Housing Finance Ltd (DHFL) on Friday, said it is targeting to raise up to Rs 4,000 crore through a maiden issue of non-convertible debentures (NCDs), where investors have the option of linking the coupon with retail inflation.
The housing finance firm will be issuing secured redeemable NCDs of face value of Rs 1,000 each aggregating up to Rs 4,000 crore, the company said in a statement here.
The issue size is Rs 1,000 crore with an option to retain over-subscription up to Rs 4,000 crore, it said.
For investors, there will be an option to choose between three, five and ten year tenors with monthly, annual and cumulative payment options, it said.
The annual yield will go up to 9.2-9.3 per cent, depending upon the class of investors — whether retail or high networth individual — and the tenor.
“The NCD issue is one of the various funding sources to optimise funding costs and maintain a diverse funding portfolio that will enable us to achieve funding stability and liquidity,” the company’s Chairman and Managing Director Kapil Wadhwan said.
The net proceeds of the issue will be used for onward lending, financing and general corporate purposes, he added.
The issue, rated ‘AAA’ by Care Ratings (indicating a very high degree of safety), will be open for subscription between August 3-16.