27 March 2024 – PIMCO, Blackrock, Pictet, and ABRDN were among the several foreign investors that contributed to Indiabulls Housing Finance’s foreign bond offering, which raised $ 350 million (about Rs. 2,900 crores) and was subscribed over three times, with a $1.1 billion book size. It is very uncommon for international behemoths like PIMCO to take part in an Indian corporate bond issuance.
With this mobilization from the international bond issue, IBHFL has raised around Rs 8,300 crore in total over the previous 1.5 months. It had finished a Rs 3,700 crore rights issue earlier this month. Prior to that, it obtained the remaining amount via bank term loans and around Rs 150 through a domestic retail bond issue.
“During the last 40 days, we have raised a billion dollars through equity, foreign debt, and domestic debt,” said Gagan Banga, VP and MD of IBHFL. According to a corporate announcement, the foreign bonds were priced 450 basis points (100bps = 1 percentage point) more than the Federal Reserve Bank of New York’s Secured Overnight Financing Rate.
Conclusion
Under its social financing structure, IBHFL has lifted its dollar-denominated bonds to the status of “Social Bonds.” After Shriram Finance issued similar social bonds in January of this year, IBHFL is the second nonbank financial company to do so.
