RELIANCE HOME FINANCE LIMITED TO RAISE RS 1,000 CRORE (US$ 14.7 MILLION) AS BASE ISSUE SIZE, WITHAN OPTION TO RETAIN OVERSUBSCRIPTION SECURED NCDs RATED CARE AA+:STABLE AND BWR AA+:OUTLOOK STABLE UNSECURED NCDs RATEDCARE AA:STABLE AND BWR AA:OUTLOOK STABLE SECURED NCDs OFFERED FOR A TENURE OF 3, 5 AND 10 YEARS AT COUPON RATE VARYING FROM 8.7% TO 9.15 % UNSECURED NCDs OFFERED FOR A TENURE OF 15 YEARS WITH A CALL OPTION AFTER 10 YEARSAT COUPON RATES VARYING FROM 9.25% TO 9.4% NCDs TO BE LISTED ON BOTH NSE AND BSE ISSUE OPENS ON THURSDAY, DECEMBER 22, 2016 Mumbai, December 20, 2016: Reliance Home Finance Ltd. (RHFL), a 100 per cent subsidiary of Reliance Capitaland a part of Anil D. Ambani led Reliance Group, today announced its maiden public issue offering SecuredRedeemable Non-Convertible Debentures (Secured NCDs) and Unsecured Redeemable Non-ConvertibleDebentures (Unsecured NCDs). The Company proposes to raise Rs 1,000 crore (US$14.7 million), as base issue size, by offering Secured NCDsand Unsecured NCDs at a face value of Rs 1,000 each. The Unsecured NCDs will be in the nature of subordinateddebt and will be eligible for inclusion as Upper Tier II Capital. The NCDs will be issued in one or more tranches up to the shelf limit, on terms and conditions as set out in theTranche 1 Prospectus. The Company will use the amount for the purpose of onward lending, financing, and for repayment/ prepayment ofinterest and principal of existing borrowings and for general corporate purposes. “India’s mortgage-to-GDP ratio is still low at 10% in 2015-16 compared with other developing countries but it hasimproved from 7.4% in 2009-10. The recent push by the government to provide ‘Housing for All’ by 2022 and varioussteps taken to implement the same, are expected to boost sales of affordable and low-cost housing units andconsequently, financing for the same”, said Mr Ravindra Sudhalkar, CEO, Reliance Home Finance. The Secured NCDs have been rated CARE AA+: Stable by Credit Analysis and Research Limited (CARE) andBWR AA+ Outlook: Stable by Brickwork Ratings India Private Limited (Brickwork). These ratings indicate that theinstruments are considered to have high degree of safety regarding timely servicing of financial obligations and carryvery low credit risk**. The Unsecured NCDs have been rated CARE AA:Stable by CARE and BWR AA Outlook: Stable by Brickwork. Theratings indicate that instruments are considered to have high degree of safety regarding timely servicing of financialobligations and carry very low credit risk**. The NCDs are being issued to Institutional, Non-Institutional, HNIs and Retail investors for a period of 3 years, 5 yearsand 10 years for Secured NCDs and 15 years for Unsecured NCDs with a call option after 10 years. The coupon rate for the NCDs for respective categories are:
|Category I||Category II||Category III||Category IV|
|Institutional Investors||Non-Institutional Investors||HNI Investors||Retail Investors|
|Series I – 3 Years||8.70||8.70||8.90||8.90|
|Series II- 5 Years||8.90||8.90||9.05||9.05|
|Series – III 10 Years||9.00||9.00||9.15||9.15|
|Series IV- 15 Years*||9.25||9.25||9.40||9.40|
Coupon in % per annum, payable annually. *In the event our company does not exercise the call option after 10 years, a step-up of 25 bps above coupon shall be payable – as detailed in the prospectus. The NCDs are proposed to be listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). RHFL provides a wide range of loan solutions like Home loans, LAP, Construction finance and Affordablehousing. The Company also provides property solutions’ services including property valuation, advisory services to realestate developers on debt syndication, fund raising through equity, mergers and acquisitions, etc. For the half year ended September 30, 2016, RHFL disbursements were at Rs 3,342 crore (US$ 492.9 million) and the Assets Under Management were at Rs. 9,383 crore (US$ 1.4 billion). The outstanding loan book of RHFL, as onSeptember 30, 2016, was Rs 7,905 crore (US$ 1.17 billion) – with 100% of the loan book continuing to be secured. TheCompany has a large footprint and its loan book is spread across 100 locations through 43 branches. The issue is being made pursuant to the provisions of the Securities and Exchange Board of India (Issue and Listingof Debt Securities) Regulations, 2008 as amended (the “SEBI Debt Regulations”), the Companies Act, 2013 and Rulesmade thereunder as amended to the extent notified. The Lead Managers to the Issue are: Edelweiss Financial Services Limited, A. K. Capital Services Limited, Axis BankLimited, Trust Investment Advisors Private Limited and Yes Securities (India) Limited. The debenture trustee to theissue is IDBI Trusteeship Services Limited and Karvy Computershare Private Limited are registrar to the issue.