Tata Capital Housing Finance plans to raise up to Rs 2,000 crore via NCDs

Tata Capital Housing Finance, the wholly-owned subsidiary of Tata Capital Ltd, on Monday said it is planning to raise up to Rs 2,000 crore through non-convertible debentures.

This is a maiden retail bond issue from the company. The base size of the issue is of Rs 500 crore with an option to retain an oversubscription up to Rs 1,500 crore.

The company is offering four bonds maturing in three, five, eight and 10 years, with coupon ranging between 7.92 per cent to 8.70 per cent. The bonds are giving a monthly and annual interest payment options to the subscribers.

Around 75 per cent of the fund raised through these bonds will be used for onlending, financing, repayment/ payment of debt and the balance for general corporate purposes.

"With a sharper focus on the affordable housing segment, we will seek growth opportunities in tier-II and III markets. We will continue to grow profitably," Tata Capital Housing Finance MD Anil Kaul said.

The company's borrowings comprise 43 per cent from banks, 20 per cent from the National Housing Bank and 15 per cent from bonds. The issue will open for subscription on January 7 and closes on January 17. The bonds have been rated AAA by Crisil and Icra. Lead managers to the issue are AK Capital and Edelweiss Financial Services.

The housing finance company focuses primarily on providing affordable home loans, home equity and construction finance. As of September-end, gross non-performing assets were Rs 400.59 crore or 1.45 per cent, and net NPAs at Rs 145.06 crore or 0.53 per cent.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel