Sundaram Hous­ing Fi­nance will raise Rs. 3,800 crore

Accommodation Times - - Housing Finance -

Sundaram BNP Paribas Home Fi­nance is plan­ning to raise Rs. 3,800 crore from the mar­ket dur­ing the cur­rent fis­cal to sup­port its loan dis­bur­sal re­quire­ment.

Srini­vas Acharya, man­ag­ing direc­tor, Sundaram Home Fi­nance, said: “The com­pany is plan­ning to raise around R3,800 crore this year, in­clud­ing around R1,400 crore through NCDs and over R600 crore through com­mer­cial pa­per, with the rest through fixed de­posits, NHB re­fi­nance and bank fund­ing. The com­pany could also look at the ECB route in the future as a route to fund-rais­ing."

The home fi­nance com­pany an­nounced that lead­ing rat­ing agency Icra has up­graded its long-term rat­ings to AA+ (sta­ble). The rat­ings in­clude NCDs, sub-debts and long-term bank bor­row­ings.

Icra has also re­vised the out­look on Sundaram Home Fi­nance’s fixed de­posits to from MAA+ Sta­ble to MAA+ (Pos­i­tive). The up­ward re­vi­sion fol­low the com­pany’s strate­gic de­ci­sion to de-fo­cus on non­hous­ing loans.

Sundaram Home Fi­nance re­ceived eq­uity in­fu­sion of Rs. 80 crore from Sundaram Fi­nance and BNP Paribas, fol­low­ing an ear­lier R100- crore eq­uity in­fu­sion re­ceived in FY13. The up­ward re­vi­sion in rat­ing also took into ac­count the con­sis­tent eq­uity sup­port from the par­ent com­pa­nies.

Ac­cord­ing to a com­pany state­ment, Sundaram Home Fi­nance’s strong fran­chise in the south­ern mar­ket and its ac­cess to the credit tested cus­tomers of Sundaram Fi­nance were seen as fur­ther rea­sons for the pos­i­tive up­grade.

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