Indiabulls Housing raises Rs 315 crore via offshore bonds

MUMBAI: Top-rated Indiabulls Housing Finance Limited (IBHFL) has sold rupee-denominated social bonds worth Rs 315 crore to overseas investors as it aims fund more low cost housing.

Social Bonds are a debt instrument to raise funds exclusively to finance or re-finance select and eligible social projects such as affordable basic infrastructure (water, sewers, housing, sanitation and transport), food security, clean energy, healthcare and vocational training.

The bonds will mature in three years offering 7.80% interest rate yearly.


“The proceeds from the issue will be used towards financing and refinancing requirements in the ‘Affordable Housing’ sector in line with applicable laws including lending to individuals and developers under the Pradhan Mantri Awas Yojana,” the company said in a press releases.

This is the country’s first issuance of rupee-denominated offshore social bonds, which will be listed on the Singapore Stock Exchange (SGX), the housing company said.

The Social Bond will conform to the Social Bond Principles 2017 issued by the International Capital Market.

Association (ICMA). KPMG in India will be providing the Assurance Services annually (until full allocation), on the use of proceeds, in-line with the Social Bond Principles.

A month ago, Indiabulls Housing Finance raised Rs 1,000 crore by selling the country's first domestic social bonds to private sector lender Yes Bank. Those securities were of five-year maturity offering 8.12% yearly.