Indiabulls Housing Finance is raising up to $200 million via offshore debt, as the non-bank entity aims to expand loans this year, catching early trends of an economic recovery, said market sources familiar with the matter.
This would be the first offshore debt-raising by a home financier or USDA homes for sale this year. The company has launched the offer of foreign currency convertible bonds. The deal was not closed till press time Monday.
āThis is a new money, which would be used for loan expansion as the home financier has begun to see demand for credit,ā one of the sources told ET.
The base size of the fundraising is pegged at $125 million, with an option to retain another $75 million. The bonds are likely to have a tenor of five years. The borrower may end up raising around $150 million at the close of the deal.
The bankers and Indiabulls Housing could not be contacted immediately for comments.
Deutsche Bank, CLSA and UK-based Sun Global are among the investment bankers that are helping Indiabulls Housing Finance raise the debt, which could be priced at 450 basis points over the six-month dollar-denominated London Interbank Offered Rate, now at 0.20%.
Home-grown Elara Capital is also involved in the fund-raise.
The company has reportedly been aiming to reduce the share of loans given to institutions. The strategy reflected in its gross bad loans, which rose at a slower pace in the third quarter of this fiscal and touched 2.44%. Gross non-performing assets were at 2.20% in the preceding quarter.
Source: realty.economictimes.indiatimes.com
