Bonds purchased by LIC help Indiabulls Housing raise Rs500 crore

14 Jul 2022 , 09:47 AM

In order to increase the number of loans granted to homebuyers, Indiabulls Housing Finance obtained Rs500 crore through the sale of local
bonds.

According to reports, Life Insurance Corporation purchased the bonds, which were given an ICRA rating of AA (Stable).

These 10-year bonds are offering 9.70%. The money will probably go toward expanding the loan book. The domestic financier acquired $100 million from the State Bank of India via an offshore transaction two weeks ago.

With more than 151 offices spread out over India, IBFH will be able to finance a sizable portion of affordable housing over a considerable amount of time.

ICRA stated in a note that IBHFL’s capitalization profile is comfortable despite the substantial write-offs and the cautious provisioning being carried on the balance sheet (4.5% of the loan book as of December 31, 2021).

In the March quarter of FY22, the housing financing company recorded a 10.5% decline in assets under management to Rs72,211 crore.