Offer innovative NCD Issue structure with option of Consumer Price Index (Inflation) linked coupon rate Options of 3-, 5-, 10-year tenor with monthly, annual & cumulative payment options
- Triple A Rating: “CARE AAAZ” by CARE; “BWR AAAZ” Outlook: Stable by Brickwork
- Annual Yield: HNI/Retail: Ranging from 9.20% to 9.30%
- Propose to list NCDs on NSE and BSE
- Issue size of Rs. 1,000 crore with option to retain over-subscription up to Rs. 4,000 crore
- allotment o first-come, first-served basis
- Investors have an option to apply for NCDs in dematerialized or in physical form
MUMBAI, (GNI): Dewan Housing Finance Corporation Limited one of India’s leading private sector housing finance companies registered with National Housing Bank (NHB), proposes to open on August 3, 2016, a public issue of secured redeemable Non-Convertible Debentures (NCD) of face value of Rs. 1,000 each aggregating up to Rs. 4,000 crore (Shelf Limit) by way of Tranche 1 Prospectus to be read together with the Shelf Prospectus dated July 26,2016 (Prospectus). The issue is scheduled to close on August 16, 2016, wit an option of early closure or extension as decided by the Board of Directors of our Company (Board) or the Finance Committee.
The NCDs proposed to be issued under this Issue have been rated “CARE AAA (Triple A)” for an amount of Rs 4,000 crore by Credit Analysis and Research Limited (CARE) vide their letter dated July 7, 2016 and BWR AAA (Pronounced as BWR Triple A) Outlook: Stable for an amount of Rs. 4,000 crore, by Brickwork Ratings India Private Limited (Brickwork) vide their letter dated July 7, 2016. The rating of CARE AAA Outlook: Stable by Brickwork indicates that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry the lowest credit risk. The minimum application amount is Rs. 10,000 collectively across all options o NCD and in multiples of One (1) NCD after the minimum application. Allotment is on a first-come-first-serve basis (expected on the date of over subscription, if any, when all the investors applying on the said date will get allotment on a proportionate basis). Investors have an option to apply for NCDs in dematerialized as well as physical form.
Speaking to the media persons Kapil Wadhawan, Chairman and Managing Director, DHFL, said “Urbanization, demographic changes, increasing financial penetration and low mortgage to GDP ratio will propel growth and create strong demand in the housing finance business. DHFL has been fulfilling home ownership dreams for millions of Indians since 1984. this is the Company’s first NCD Public Issue. The NCD Issue is one of the verious funding sources to optimize funding costs and maintain a diverse funding portfolio that will enable us to achieve funding stability and liquidity. As a diversified financial services Group with customer offerings in loans & deposits, we proposes to utilise the Net Proceeds of the NCD Public Issue for the purpose of onward leading, financial, and general corporate purposes.
Mr Wadhawan also added, “in our CARE Triple A and BWR AAA rated NCD Public Issue, Retail individual investors and High Net Worth Individuals (HNIs) have a combined allocation ratio of 60% and retail individual investors will get the first priority in case of undersubscription in any investor categories. We are offering an innovative floating instrument in the form of Consumer Price Index (inflation) linked instrument tat has a Coupon Rate currently of 9.10% for Category III and Category IV investors respectively.”
Interest on Application Money is at 8.00% p.a. and Interest on Refunded Money is at 6.00% p.a.
The NCD offered through this Shelf Prospectus are proposed to be listed on the National Stock Exchange of India Limited (NSE) and BSE Ltd.
The Lead Managers to the Issue are Edelweiss Financial Services Ltd, A K Capital Services Limited, ICICI Bank Ltd. SBI Capital Markets Ltd., Trust Investment Advisorss Pvt Ltd., and YES Secuarities (India) Ltd. ends