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Indiabulls Housing Finance, a leading Indian mortgage lender, has successfully raised USD 350 million through its first overseas bond issuance in over four years. This move signals a strategic shift for the company, aiming to diversify its funding sources and support its focus on affordable housing initiatives.
The dollar-denominated bonds have a maturity of 39 months (over 3 years) and will offer a fixed interest rate of 9.70%. Notably, the interest rate was lower than the initial guidance of 9.95%, indicating strong investor demand.
Indiabulls has labelled these bonds as "social bonds," signifying the intended use of the funds raised. The company plans to deploy the capital towards providing home loans in the affordable housing segment and supporting small businesses. This initiative aligns with India's growing need for accessible housing solutions and aligns with the company's evolving focus.
The bond issuance attracted significant interest from global investors. Over 100 investors participated, with total demand exceeding USD 1.1 billion - more than three times the initial offering size. Prominent participants included major financial players like Aberdeen Plc (UK), PIMCO, Blackrock, Swiss private banks Pictet and Vontobel, and a sovereign wealth fund from the UAE.
This successful bond issuance marks Indiabulls' return to the international debt market after a period of focusing on consolidating finances. The move signifies a strategic shift towards diversifying funding sources of at least USD 350 million and fuelling future growth. Indiabulls is also undergoing a name change to Samman Capital, reflecting its broader ambitions beyond traditional mortgages and potentially encompassing retail lending solutions.
Indiabulls' successful return to the overseas debt market with a USD 350 million offering demonstrates renewed investor confidence in the company's strategy. This capital injection will not only strengthen their financial position but also provide crucial resources to support their focus on affordable housing and small businesses.
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