Three new non-convertible debentures (NCDs) have hit the market this week through which investors can look to earn up to 9.75% interest per annum. While Aadhar Housing Finance (AHFL) NCD issue will open for subscription tomorrow — September 14, Tata Capital Financial Services’ NCD opened for subscription on September 10 and Indiabulls Commercial Credit’s on September 11.
NCDs this week: check details of the issues
Aadhar Housing Finance (AHFL)
Aadhar Housing Finance Limited, formerly known as DHFL Vysya Housing Finance Limited, is looking to raise up to Rs 1,400 crore through NCDs. The secured redeemable NCDs issue will be open for subscription tomorrow (Friday, September 14) and close on September 24.
The base size of the issue is Rs 500 crore, with an option to retain oversubscription up to Rs 900 crore. This is the first tranche issue of the deposit-taking housing finance company, which has an approval to raise up to Rs 3,000 crore through bonds.
The NCDs come with tenures of 3, 5 and 10 years and interest rates ranging between 9.60-9.75% per annum. “At least 75% of the proceeds of the issue will be used for lending, financing and repayment of interest and principal of existing borrowings of the company. The balance will be used for general corporate purposes,” PTI reported Deo Shankar Tripathi, MD, and CEO, AHFL, as saying.
The Secured NCDs have been rated by CARE as CARE AA+ (SO)/Stable and by Brickwork Ratings India (“Brickwork”) as BWR AA+ (SO)/Stable.
Indiabulls Commercial Credit
The public issue of secured redeemable NCDs of Indiabulls Commercial Credit Ltd, a 100% subsidiary of Indiabulls Housing Finance Ltd, started on September 11 (Tuesday) and will close on September 14 (Friday). The base size issue is Rs 1,000 crores with an option to retain oversubscription of up to Rs 1,000 crores for the issuance of additional NCDs aggregating up to Rs 2,000 crores.
The NCDs come with tenures of 2, 3, 5 and 10 years. The company will be paying an interest ranging between 8.57-9.20% per annum on these bonds. The NCDs have been rated by Crisil as CRISIL AAA/Stable and by Care as CARE AAA/Stable.
Tata Capital Financial Services
In its maiden NCD issue, Tata Capital Financial Services — Tata Capital’s flagship lending arm — seeks to raise up to Rs 7,500 crore. The issue opened for subscription on September 10 (Monday) and will close on September 21, with an option for early closure or extension as decided by the company’s board. The base issue size is Rs 2,000 crore with an option to retain oversubscription up to Rs 7,500 crore.
The NCDs come with tenures of 3, 5 and 10 years and interest rates ranging from 8.7-9.1%. The interest rate for 5 years secured NCD is fixed at 8.9% per annum, while the higher interest rate of 9.1% is applicable on 10-year unsecured NCDs. The Secured NCDs have been rated by Crisil as CRISIL AAA/Stable and by CARE as CARE AAA/Stable.