Dewan Housing Finance Corporation Limited (DHFL) proposes to open from May 22, 2018 to June 4, 2018 a public issue of upto 12 crores secured redeemable Non-Convertible Debentures (NCD) of face value of Rs 1,000 each for an amount of Rs 3,000 crore with an option to retain oversubscription of upto Rs 9,000 crore aggregating upto Rs 12,000 crore.
The NCDs proposed to be issued have been rated ‘CARE AAA; Stable’ for an amount of upto Rs 15,000 crore by CARE Ratings Limited and ‘BMR AAA, Outlook; Stable for an amount upto Rs 15,000 crore by Brickwork Ratings India Private Limited.
Kapil Wadhawan, Chairman and Managing Director, DHFL, said that the last few years witnessed DHFL reporting high growth in an increasingly competitive landscape, while strengthening its commitment to actively expand financial inclusion across India and provide greater impetus to the Government’s mission of Housing for All by 2022.
“The launch of DHFL’s third public issue at this critical phase of growth, while allowing us to diversify our borrowing portfolio, is set to provide a strong thrust to the company’s growth plans in progressing towards the next phase of high growth,” he said while noting that the company – in bringing value addition to its stakeholders – has introduced a floater rate NCD, which is benchmarked to Overnight MIBOR and in which investors will received interest based on Overnight MIBOR rate published by FBIL compounded daily and payable annually.
“Bond markets hold the key to intermediation and we gave the momentum to the Bonds market. There is about 35 to 40 million units of housing deficit in the market,” he said while replying to media questions. “The mortgage to GDP ratio is significantly low – implying that there is a large, untapped market and housing finance companies have capitalized on this opportunity. At 0.96% NPA, we have one of the lowest NPAs in India – thanks to our strategies including strong asset quality and building on IT platforms.”
DHFL, which is backed by strong stakeholder trust and its unwavering commitment towards enabling affordable housing dreams, since 1984 has been striving to provide financial accessibility to lower and middle income customer segments among the semi-urban and rural population in India, he added.
