Page 16 - Banking Finance December 2019

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

Aadhar Housing Finance Shriram Housing Finance increases Rs 700 crore

likely to exit small- Shriram Housing Finance has increased around 700 crore from five banks in the
last one month through securitisation deals, term
builder biz loans and refinancing through the National Housing
Aadhar Housing Finance plans to exit Bank. Parent Shriram City Union Finance is also ex-
its small builder fi- ploring a fund infusion of 500 crore in two tranches
nancing business in the mortgage lender to prop up the loan book.
at a time when “We were growing our book, but then issues with
pain from the DHFL happened and we ran out of money because the funding taps were shut
nation’s credit crunch abounds. for us. But, towards end of September and a month since then, we have man-
“We are in process of phasing out aged to get sanctions of roughly 700 crore. We are now back in business
this small builder loan portfolio to fullfledged and the cash will suffice till March. We are also discussing with the
keep the company 100% retail fo- parent to infuse capital which hopefully should happen by the next quarter,”
cused as per mandate from new said Ravi Subramanian, managing director, Shriram Housing Finance.
owners," said Deo Shankar Tripathi, The infusion from Shriram City Union Finance could be a rights issue with a pro-
chief executive officer of Aadhar portionate participation from Valiant partners, which holds 22% stake in the
Housing Finance Ltd. company. The mortgage-lender has raised term loans of 150 crore from Syndi-
Meanwhile, the RBI has seized ma- cate Bank, 100 crore each from Indian Bank and United Bank of India. It also
jor non-bank lender Dewan Housing raised 150 crore from Canara Bank through a securitisation deal and 50 crore
Finance Corp., which held a control- via a pass-through certificate (PTC) from ICICI Bank. It also raised 130 crore from
ling share in Aadhar until selling it to National Housing Bank (NHB) through the refinance scheme.
Blackstone in June. Tripathi said he
expects some improvement in Indian LIC Housing Finance seeks bids to raise up to Rs25bn
credit markets next quarter, after for two-year one-month bonds
the RBI seizure of Dewan Housing.
According to a market source, LIC Housing Finance is seeking bids to increase
India’s more than 15-month-old
up to Rs25bn (US$349m) from two-year one-month
credit crisis has dragged economic
bonds. The housing finance company is looking for
growth down to its slowest in six Rs7.5bn plus a greenshoe amount of Rs17.5bn. The
years. The surprise seizure of Dewan issuer has asked investors to place bids on the elec-
underscores heightened efforts by tronic platform on November 27 in an open bidding
authorities to limit the spread of session. The non-banking financial company is yet to
defaults.
make an official announcement on the planned bond sale.

16 | 2019 | DECEMBER | BANKING FINANCE