Indiabulls’ Bond Sale Is Test of Confidence for Shadow Banks
- Lender seeks funds in public market after three-year absence
- Hopes to be a regular issuer in public debt markets: Banga
Photographer: Mint/Hindustan Times/Getty Images
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Indiabulls Housing Finance Ltd., one of India’s largest mortgage lenders, is seeking to raise funds in the local public bond market after an absence of three years by the group, in a deal that will test investor confidence in the nation’s non-bank financiers.
Indiabulls Housing is seeking to raise as much as 10 billion rupees ($137 million) through the sale of notes that open for subscription on Monday. Yields on the company’s local-currency bonds surged to more than 40% in 2019, stock exchange data show, as investors soured on debt of the company and other Indian shadow lenders following the surprise collapse of a major non-bank financier.