India Infoline Housing Finance: Public issue of 11.52% Secured, Redeemable, NCDs


India Infoline Housing Finance Limited to open the public issue of 11.52 % Secured, Redeemable, Non-Convertible Debentures (NCDs) aggregating upto Rs 250 Crore  with an option to retain over-subscription upto Rs 250 Crore million aggregating to a total of upto Rs 500 Crore on December 12, 2013

 India Infoline Housing Finance Limited (IIHFL), the housing finance arm of India Infoline Limited, one of the largest diversified financial services companies in India, plans to open  on December 12, 2013 a public issue of Secured, Redeemable, Non-Convertible Debentures (NCDs) of face value of Rs 1,000 each. The NCD issue is aggregating upto Rs 250 Crore with an option to retain over-subscription up to Rs 250 Crore for issuance of additional NCDs aggregating to a total of up to Rs 500 Crore


These NCDs have a monthly option and will be issued for a period of 5 years. The yield on the NCD works out to 12.15% p.a.

These bonds are secured against home and mortgage receivables.

Rrecent NCD issue of India Infoline Finance Limited, parent company of IIHFL, raised Rs 1,050 crores, including the green shoe option. This was the largest public issue of bonds, by any company in India, in the last 4 years (as per Prime Database)

Commenting at the press conference on the NCD Issue, Mr Nirmal Jain, Chairman, India Infoline Ltd said, “This is the fourth issue from IIFL Group in the last 3 years. All our earlier issues have met with overwhelming response and customer’s trust. In the corporate bond market, IIFL brand is well accepted and has an impeccable track record. ”


Mr S. Sridhar, Chairman, India Infoline Housing Finance Limited, said, “Our robust credit selection, appraisal and collection process have ensured that the asset quality standards are among the highest and non performing assets are kept under control at a low level.”

Mr R.Venkataraman, Managing Director, India Infoline Ltd said, “These bonds are secured against home and mortgage receivables, which in the Indian context have performed better than most other asset classes. These bonds have an attractive yield of 12.15% with an added benefit of monthly cash flow of interest income.”

The NCDs proposed to be issued under this Issue have been rated ‘CRISIL AA-/Stable’ by CRISIL and ‘CARE AA-' by CARE. The rating of NCDs by CRISIL and CARE indicates instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The ratings provided by CRISIL and/or CARE may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. The NCDs are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.

The Issue will close on December 20, 2013 with an option to close on such earlier date or extended date up to a period of 30 days from the date of opening of the Issue, as may be decided at the discretion of the duly authorised committee of Directors of IIHFL subject to necessary approvals.

Investors have an option for Allotment of NCDs in both dematerialized form and/or physical form. The funds raised through the Issue, after meeting the expenditures of and related to the Issue, will be used for the financing activities including lending and investments, subject to applicable statutory and/or regulatory requirements, to repay our existing loans and our business operations including for our capital expenditure and working capital requirements.

Axis Capital Limited, Trust Investment Advisors Private Limited, India Infoline Limited and Edelweiss Financial Services Limited are the Lead Managers to the Issue and RR Investors Capital Services (P) Limited, Karvy Investor Services Limited and SMC Capitals Limited are the Co-Lead Managers to the Issue. IDBI Trusteeship Services Limited is the Debenture Trustee, while Link Intime India Private Limited is the Registrar to the Issue.

A detailed Prospectus dated December 2, 2013  is filed with SEBI, the Registrar of Companies - Maharashtra, Mumbai, The National Stock Exchange of India Limited and the BSE Limited and will be available on the website of IIHFL at www.iihfl.com; and websites of SEBI, NSE and BSE at www.sebi.gov.in; www.nseindia.com; and www.bseindia.com respectively and on the respective websites of the Lead Managers at www.axiscap.in, www.iiflcap.com, www.trustgroup.co.in and www.edelweissfin.com and Co-Lead Managers at www.rrfinance.com/www.rrfcl.com, www.karvy.com and www.smccapitals.com.  

About India Infoline Housing Finance Limited (IIHFL)

IIHFL is a wholly owned subsidiary of India Infoline Finance Limited. It received a Certificate of Registration (not valid for acceptance of public deposits) from the National Housing Bank (NHB) dated February 3, 2009 to commence / carry on the business of a housing finance institution. IIHFL offers housing loans and Loans against Property. IIHFL’s lending products include Mortgage Loans, which includes Retail Mortgage Loans and Corporate Mortgage Loans. These loans are bifurcated into Housing Loans and Loans Against Property.

About India Infoline Finance Limited

India Infoline Finance Limited is a systemically important non-deposit taking NBFC focusing on Mortgage Loans, Commercial Vehicle Finance, Gold Loan, Capital Market Finance and Healthcare Finance. India Infoline Finance Limited is a subsidiary of India Infoline Limited (“IIFL”), a diversified financial services organization having presence across India. The global footprint of IIFL and its subsidiary companies (IIFL Group) extends across geographies with offices in New York, London, Geneva, Hong Kong, Singapore, Dubai, Mauritius and Colombo. IIFL Group’s services and products include retail broking, institutional equities, commodities and currency broking, wealth advisory, credit & finance, insurance broking, asset management, financial products distribution & investment banking. The product/ services portfolio of IIFL Group caters to the diverse investment and strategic requirements of retail, institutional, corporate and affluent clients. We leverage extensively on the infrastructure, distribution network and insights of IIFL Group into market and customer needs.

For further details please contact:

India Infoline Housing Finance Ltd
Anil Mascarenhas
M: 09967576026

U. Christopher Charles
Concept Public Relations
M: 9842475706

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