Indiabulls Housing offers fifth tranche of debentures in public offering

By Mary-Katherine Stinson

Lexington, Ky., Feb. 24 – Indiabulls Housing Finance Ltd. is opening up a fifth tranche of secured, redeemable, non-convertible debentures (Crisil: AA/ICRA: AA), according to a notice.

The company will sell up to Rs. 1 billion, with an over-allotment option for another Rs. 8 billion. The shelf limit for the issuance is Rs. 14 billion.

The face value of each debenture is Rs. 1,000.

Investors have a choice between two-year, three-year and five-year debentures.

Two-year investors will receive coupons annually, monthly or cumulatively. The effective yield is between 9.24% and 9.65%.

Three-year investors will be paid interest annually, monthly or cumulatively at redemption, with yields between 9.39% and 9.9%.

Five-year investors will be paid annually or monthly, with yields between 9.64% and 10.15%.

The annual and monthly debentures with a three-year tenor, and the five-year debentures each amortize.

There are incentive coupons for an additional 0.25% per year for investors, in certain situations.

None of the debentures are callable.

The opening date for the offering is March 3, and the offering closes on March 17.

Allotments are expected for March 23.

The debentures will be listed on the National Stock Exchange of India Ltd. and BSE Ltd.

Indiabulls is a Gurugram, India-based real estate company.

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