DHFL plans to raise Rs 50,000 crore in FY19 through debt market and bank borrowings to support business growth

Mumbai: Mortgage lender Dewan Housing Finance (DHFL) is planning to raise Rs 50,000 crore through the debt market and bank borrowings in the current financial year to support business growth, a top official said on Thursday. Of this, the company is looking to raise up to Rs 12,000 crore through issuance of non-convertible debentures (NCDs) next week. “This year, the plan is to raise about Rs 50,000 crore of fresh funding from debt instruments and banks. Our lending plan for this financial year is going to be 20 percent higher than the previous year,” said Kapil Wadhawan, chairman and managing director, DHFL. In FY18, the company had raised Rs 35,000 crore through bond issuances. [caption id=“attachment_4473541” align=“alignleft” width=“380”] A file photo of Kapil Wadhawan, chairman and managing director, DHFL. Image courtesy: @kwadhawan1[/caption] The company’s incremental disbursement was close to Rs 45,000 crore in the last financial year, while this year (FY19), it expects the same to be at Rs 55,000 crore. In April this year, the company had raised Rs 1,000 crore through masala bonds. It’s latest NCD issue, set to open on 22 May and close on 4 June, has a base size of Rs 3,000 crore, with an option to retain oversubscription of up to Rs 9,000 crore. The company is offering bonds maturing in three, five seven and 10 years, with coupon rates in the range of 8.9 to 9.10 percent. “The launch of our third public issue of bonds at this critical phase of growth is set to provide a strong thrust to the company’s growth plans as we progress towards the next phase of high growth. It also allows us to diversify our borrowing portfolio,” Wadhawan said. Nearly 75 percent of the net proceeds of the NCD issue will be used for onward lending, financing, and for repayment and prepayment of interest and principal of existing borrowings of the company. The rest will be used for general corporate purposes, he said. The bonds will be listed on NSE and BSE. Lead managers to the issue are Yes Securities (India), Edelweiss Financial Services, AK Capital Services, Axis Bank, Green Bridge Capital Advisory Private, SBI Capital Markets and Trust Investment Advisors, among others.