Indiabulls’ $350 million foreign bond offer subscribed 3 times – Times of India

by The Technical Blogs


MUMBAI: A host of international investors including PIMCO, Blackrock, Pictet and Abrdn invested in Indiabulls Housing Finance’s $350-million (Rs 2,900-crore) foreign bond offering that was subscribed over three times, generating a book size of $1.1 billion. The participation of global giants like PIMCO in an Indian corporate bond offering is a relatively rare occurrence.
The bond offering closed on Tuesday evening, a company release said.
This mobilisation from foreign bond offering takes IBHFL‘s total fundraising in the last one and half months to about Rs 8,300 crore. Earlier this month, it had completed a rights offering worth Rs 3,700 crore. Before that it raised about Rs 150 through a domestic retail bond offering and the balance was raised through bank term loans.
“We have raised a billion dollars between equity, international and domestic debt over the last 40 days,” said Gagan Banga, VP & MD, IBHFL.
The foreign bonds were priced at 450 basis points (100bps = 1 percentage point) above Secured Overnight Financing Rate of the Federal Reserve Bank of New York, a company release said.
IBHFL’s dollar-denominated bonds have been raised as ‘Social Bonds’, under its social financing framework. IBHFL is the second NBFC to issue such social bonds, following Shriram Finance’s issue in January this year. Such bonds whose proceeds are deployed towards home loans in the affordable housing segments, loans to micro- and small-enterprises, towards green buildings and renewable energy qualify as social bonds. The company is very focused on how it utilises the proceeds from the social bonds, Banga said.
“We are sure to get support from multilateral agencies to the tune of another billion dollars over the next 12-18 months,” he said.


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