Indiabulls Housing raises Rs 500 crore from LIC via bonds

Life Insurance Corporation is said to have subscribed those bonds, rated AA (Stable) by rating company

. could not be contacted immediately for comments.

Those are 10-year bonds that offer 9.70 percent. The proceeds will likely be used to build up the loan book.

Two weeks ago, the home financier raised $100 million via an offshore from the

.

With IBFH’s presence of over 151 branches across India, this source of funding will finance a large segment of affordable housing over a long period of time.

Despite the aggressive write-offs and the conservative provisioning being carried on the balance sheet (4.5% of the loan book as on December 31, 2021), IBHFL’s capitalisation profile is comfortable,” ICRA said in a note.

The housing finance company reported a 10.5 percent fall in its assets under management to Rs 72,211 crore in the March quarter FY22.

While the pressure on the developers during the lockdown was mitigated due to the moratorium offered for their loan installments under the Covid-19-related regulatory package announced by the RBI, a sustained pick-up in sales across geographies is key for the developers over the medium term.