MUMBAI: LIC Housing Finance Monday deferred its plan to raise up to Rs 1,500 crore through nonconvertible debentures (NCD) because of higher rates in excess of 9.35 per cent.
The housing finance company now plans to raise the funds later this week.Since October, the company has raisedRs 3,000 crore through NCDs on an average rate of 9.12 per cent.Originally, the company was looking to raise Rs 250-500 crore each in three tenors 1 year 11 months, 3 years 11 months and 5 years.
The bidding was between 11 am and 12 am.
Before the bidding started, the company had got responses for Rs 1,300 crore, but the rates offered were in excess of 9.35 per cent.We have deferred todays NCD borrowing because of higher rates, said Vinay Sah, MD, LIC Housing Finance.
We will go back to the market later this week to raise this amount.After the ILFS default, companies are looking to raise longer tenor funds to match their liability commitments with cash flows from assets.The company plans to raise Rs 15,000 crore to Rs 20,000 crore through a combination of NCDs, bank lines and commercial papers.
The commercial paper outstanding for the company is Rs 10,000 crore to Rs 12,000 crore, amounting to about 8 per cent of the book.
Profit at the housing finance company rose 12 per cent to Rs 573 crore during the second quarter of the financial year.
Gross nonperforming assets for the company stood at 1.20 per cent as on September 30, 2018.
Gross NPAs in the individual segment was 0.81 per cent, while in the corporate segment it was at 7.03 per cent.