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MUMBAI: Indiabulls Commercial Credit, a subsidiary of Indiabulls Housing Finance that gives retail loans other than those for buying homes, is for the first time tapping the capital market to raise about Rupee2,000 crore in a local public bond sale.
The bonds may offer rates in the range of 8.80-9.10per cent across threefive and 10-year maturities, two market sources told ET.
The issue will open for subscription in the next few weeks.
“This is the first such retail bond sale of the company as it aims to diversify its borrowing sources,” said one of the persons cited above.
Crisil and Care rated the company triple-A, the top grade.
Final rates are yet to be decided.
Bank loans form about 42per cent of their total borrowings while commercial papers and short term debt instruments fund about 33per cent.
The company seeks to increase the share of the bond market borrowing.
It has a loan book (assets under management) of around Rupee8,200 crore as on March 31, 2018.
Edelweiss, Axis Bank, Trust Capital, Yes Bank and A K Capital are helping the company raise the money through the bond sale.
Indiabulls Commercial intends to use the proceeds for both expanding loans and repaying existing borrowings of the company, which focuses primarily on long-term secured mortgage-backed loans.
In FY2018, mortgage loans constituted more than 98per cent of the total assets under management.
The company offers loans against property to salaried and selfemployed individuals and small and medium-sized enterprises.
The company has filed an initial draft prospectus with Sebi .
“We also offer mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance for the construction of residential premises,” the company said in the draft prospectus.
