GIC Housing Finance would issue bonds to generate up to Rs2,500 crore

26 Aug 2022 , 08:27 AM

In order to increase its capital resources, GIC Housing Finance has stated that it is considering raising up to Rs2,500 crore by issuing bonds on a private placement basis.

In its annual report for 2021—2022, GIC Housing Finance stated, “Seeing the long-term borrowing requirement of the company and to augment resources at a cheaper rate of interest, approval is sought to mobilize some more funds by way of issue of redeemable NCDs/bonds on private placement basis.”

The upcoming annual general meeting will be held on September 23, 2022, and the housing financier will ask its shareholders for approval of the capital raise plan at that time.

According to the company, whether the funds are distributed in one or more tranches will depend on the need, the timing of the distribution, and the market conditions, in accordance with the committee of board members’ decision.

On Thursday, the BSE closed GIC Housing Finance stock at Rs144.95 per share, up 3.83% from the previous close.

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