IIFL Home Fin raises Rs 1,400 crore from NHB and SBI

MUMBAI: IIFL Home Finance, a subsidiary of IIFL Holdings, raised about Rs 1,400 crore from the National Housing Bank and the State Bank of India, signalling the credit squeeze might be beginning to ease two persons familiar with the matter said.

IIFL Home Finance availed a refinancing facility from the NHB for Rs 1,000 crore while the countrys largest lender extended Rs 368 crore through the automated route external commercial borrowing. The NHB rate was about 9% or less than it, sources said.

Last week, PNB Housing raised $200 million via ECB automated route.

The company has to repay the NHB credit in next seven to 15 years. SBIs loan is for five years.

“We plan to deploy the money into affordable housing schemes as we see potential opportunity to do business in that segment,” said Monu Ratra, ED & CEO of IIFL Home Finance.

“We have been extinguishing our short-term liabilities in terms of commercial papers. Long term money would help us in liquidity as well as asset liability management instead, if any,” Ratra said.

IIFL Homes share of borrowings via commercial papers or short term liabilities nearly halved between June and September this year. It was at 12.5% versus against 21% three months ago end September.

IIFL Home, primarily engaged in low cost housing financing, facilitated subsidy under the Pradhan Mantri Awaas Yojna to over 14000 customers in the financial year 2017-18, which constituted 11% of the total subsidy under the programme. Its average ticket size is in the range of Rs 13 -20 lakh per borrower. The company manages Rs 16,800 crore worth of assets.

NHB too expanded its refinancing window to Rs 30,000 crore from Rs 24,000 earlier as such companies were seen struggling to avail credit amid growing investor worries on the sector.

More than a month ago, Infrastructure conglomerate IL&FS defaulted bond holders and depositors, sparking fear among investors, who raised the ante on the sector citing asset liability mismatches.

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