Indiabulls Housing offers Rs. 1 billion two- to 10-year debentures

By Marisa Wong

Los Angeles, Sept. 1 – Indiabulls Housing Finance Ltd. is opening up a second 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. 1 billion. The shelf limit for the issuance is Rs. 20 billion.

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

Investors have a choice between two-year, three-year, five-year, seven-year and 10-year debentures.

Two-year investors will receive coupons annually, monthly or cumulatively at redemption. The effective yield is between 9.24% and 9.25%.

Three-year investors will be paid interest annually, monthly or at maturity, with yields between 9.39% and 9.4%.

Five-year, seven-year and 10-year investors will be paid annually or monthly, with yields of 9.64%, 9.99% and 10.24%, respectively.

The annual and monthly debentures with a three-year tenor, and the five-year, seven-year and 10-year debentures each amortize.

There are incentive coupons for an additional 0.25% per year for investors, in certain situations, who subscribe for the two-year debentures with a cumulative coupon or the three-year debentures with an annual coupon.

None of the debentures are callable.

The opening date for the offering is Sept. 6, and the offering closes on Sept. 20.

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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