Sundaram Housing Finance will raise Rs. 3,800 crore
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.