Indiabulls offers to redeem 2 NCDs prematurely

MUMBAI: Indiabulls Housing Finance (IBH) has issued an offer to make premature redemption of its non-convertible debentures (NCDs) maturing in November and December 2019 at par.

The company has hit the headlines recently following the Reserve Bank of India’s (RBI) disapproval to its merger plan with Lakshmi Vilas Bank (LVB) rendering a long exercise stretching months between the two financial institutions meaningless.

Indiabulls said it would also evaluate further pre-mature redemption of its NCDs from time to time. IBH said it continues to maintain strong liquidity with cash and cash equivalents at around 20 per cent of its total assets as on October 10, 2019.

The company has aggregate liquidity of more than Rs18,500 crore as on October 10, which provides around 100 per cent cover over IBH’s debt repayments till September 2020.

Rating agency CRISIL and ICRA have re-affirmed the long-term rating of the company at CRISIL AA+ (Outlook: Negative) / ICRA AA+ (Outlook: Negative) on October 16, 2019 and October 11, 2019 respectively after removing the long-term rating from watch with developing implications post RBI’s rejection of its merger plan with LVB.

 

 

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