NCDs worth Rs 604 crore maturing in Q1 for Indiabulls Housing Finance

By Ankur Mishra

Indiabulls Housing Finance (IHF) is staring at a repayment of Rs 604 crore to bondholders, for non-convertible debentures (NCDs) maturing between April and June 2020, a company spokesperson told FE. “The total value of 14 NCDs maturing for payment in April and May is Rs 101 crore, and NCDs worth Rs 503 crore are maturing in June,” the company spokesperson said.

Moody’s on March 24 had downgraded the corporate family rating and the foreign currency senior, secured rating of IHF to ‘B3’ from ‘B2’, citing significant uncertainty about when the housing financier will regain access to market funding. The ratings agency said access to funding would remain challenging for longer than expected for IHF.

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The company said that it had sufficient liquidity to meet any requirement. “As on March 31, the company had cash and liquid investments of over Rs 14,000 crore,” the company spokesperson said. IHF plans to raise Rs 10,000 crore in financial year 2021 for growth capital. According to PRIME Database, NCDs worth Rs 37,982 crore are due to be repaid in April and May by NBFCs.

Rating agency Icra on April 6 reaffirmed the short-term credit rating and outlook for IHF at A1+. However, the long-term rating outlook for the mortgage financier was downgraded to ‘negative’ from ‘stable’. The company also withdrew its petition against Icra at Delhi High Court after Icra reaffirmed the short-term credit rating. In its writ petition, the housing finance company requested the court to stop it from proceeding with the downgrade due to Covid-19 scenario.

According to a Crisil report, NBFCs are likely to face liquidity challenges partly due to poor collections due to the nationwide lockdown. Reserve Bank of India’s’s moratorium guidelines,bankers say, are not applicable to NBFCs. However, NBFCs are offering their customers a moratorium.

Finance Industry Development Council (FIDC), an industry body representing NBFCs, had written to RBI seeking permission for one-time restructuring of loans availed by businesses and individuals who may be facing cash flow problems.