LIC Housing looks at raising ~50,500 cr via debt securities

LIC Housing Finance on Wednesday said it will seek shareholders’ approval in the upcoming annual general meeting in September to raise up to ~50,500 crore by issuing debt securities or other hybrid instruments on a private placement basis.

The company’s annual general meeting (AGM) is scheduled to take place through videoconference and other audio-visual means on September 28, 2020, in compliance with Covid-19 related regulations.

The approval of the members is being sought by way of “special resolution, authorising the board of directors to issue NCDS and/or any other hybrid instruments which can be classified as being Tier II capital under the provisions of the Housing Finance Companies (NHB) Directions, 2010, up to an aggregate amount not exceeding ~50,500 crore on a private placement basis,” it said in a regulatory filing.

The company will seek shareholders’ approval in the upcoming AGM in Sept to raise the amount by issuing debt securities or other hybrid instruments on a private placement basis

The non-convertible debentures (NCDS) proposed to be issued by the company for cash may be either at par or premium or a discount to face value, depending upon the prevailing market conditions at the time of issues, it added.

The company said it may issue the debt instruments in one or more tranches during the period commencing from the date of commencing of this meeting up to the date of next AGM.

LIC Housing Finance said its overall borrowing power is of ~3 trillion and the proposed fund raise plan is within the limit. Shares of the company settled at ~303.80 apiece on the BSE, up 0.05 per cent from the previous close.