NHB's Rs 2,100 crore tax-free bond issue to open on Dec 30
in Property Time |Property News !
Sun Dec 29, 2013 1:49 pm
New Delhi: The National Housing Bank's Rs 2,100 crore tax-free bond issue will hit the markets on December 30.
The base issue size is Rs 1,000 crore with an option to retain oversubscription up to Rs 2,100 crore, NHB Chairman and Managing Director R V Verma said here Friday.
The issue will open on December 30 and is scheduled to close on January 31, 2014. The bonds are proposed to be listed on the National Stock Exchange.
NHB, the regulator for housing finance companies, was permitted to issue tax-free bonds of up to Rs 3,000 crore during the current financial year. Of this, NHB had already raised Rs 900 crore through a private placement in August.
The bonds of Rs 5,000 each will be issued in tenors of 10, 15 and 20 years.
For retail investors, the coupon rate would be 8.51 per cent, 8.88 percent and 9.01 percent payable annually for 10, 15 and 20 years, respectively, for bonds up to Rs 10 lakh.
Interest rates of 8.26 percent, 8.63 percent and 8.76 percent are payable annually for 10, 15 and 20 years, respectively, for qualified institutional buyers, corporates and high net worth individuals.
The object of the issue is to mobilise long-term resources to provide financial assistance for affordable housing.
The funds will also help NHB to implement some important schemes and serve niche markets such as housing finance for women, long-term fixed-rate products and low-income housing schemes, Verma said.