The mortgage finance arm led by Anil Ambani – Reliance Home Finance – plans to raise up to Rs 3,500 crore through its first public offer for bonds. The issue will open on December 22 and close on January 6. The money raised will be utilized for lending, financing, repayment of loans and various corporate purposes.
Edelweiss Financial Services, A K Capital Services, Axis Bank, Trust Investment Advisors and Yes Securities are reported to be the lead managers to the issue.
Lately, RBI has clearly indicated that it wants large companies to look for other options as well to collect funds instead of taking debts from banks. Several finance companies including home loan segments, Indiabulls Finance and Dewan Housing Finance have been encouraging the public market to raise money through debt instruments.
The firm has fixed base issue size worth Rs 1,000 crore with an option to retain oversubscription. The issue offering non-convertible debentures (NCDs) with 3-year, 5-year and 10-year tenures will be sold at a fixed yearly interest rate of 9.15 per cent for retail and high-networth investors.
Source: ET Realty