LIC Housing Finance raising funds via non-convertible debentures

By Accommodation Times News Service

LIC Housing Finance is looking to raise Rs 28,000crore this fiscal as against Rs 23,000crore last year. “The majority of the fund raising (70%) would be through NCDs ( non convertible debentures) with bank borrowings accounting for the remainder,” VK Sharma, managing director and CEO, LIC Housing Finance said.

LIC Housing Finance is also in the process of creating a SPV (special purpose vehicle) which would exclusively cater to the home loan requirements of people in the north eastern region. “We have taken permission from the board for the same and are working on the modalities,” Sharma said. The SPV is expected to be a wholly owned subsidiary of the company. “The local laws and other regulations in some areas in the north east don’t permit mortgaging. Hence a need for a separate entity to meet the housing finance needs,” said Sharma.

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