Life Insurance Corporation informed that it has subscribed to those bonds, rated AA (stable) by a rating company ICRA. These bonds are 10-year bonds that offer 9.70 per cent. Life Insurance Corporation couldn’t be immediately contacted for comments.
IBHF raised Rs 500 crore by selling local bonds as it seeks to expand loans given to home buyers. Two weeks ago, the IBHF also raised $100 million via an offshore from the SBI.
Indiabulls Housing Finance has 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.
ICRA mentioned in a note “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,”
Indiabulls Housing Finance reported a 10.5 per cent fall in its assets under management to Rs. 72,211 crores in the March quarter of the financial year 2022.
The pressure on the developers during the pandemic was mitigated due to the moratorium offered for loan installments under the Covid-19-related regulatory package announced by the Reserve Bank of India, still, a pickup in sales across geographies is key for the developers over the medium term.