Indiabulls Housing repays Rs 1,112.5 crore of bonds, ET RealEstate

August 28, 2023

NEW DELHI: Indiabulls Housing Finance has repaid Rs 1,112.5 crore of bonds, which was availed in August 2013. Debt repayments of the 10-year monies repaid today and the five-year ECBs repaid last week, coincided to make Q2 FY24 relatively large in terms of debt servicing.

From here onwards the company said that it has entered a phase of positive asset liability management (ALM) where loan portfolio inflows will exceed debt repayments by Rs 1,300 crore to Rs 1,800 crore a quarter, all of which will be available for asset growth.

In all, since September 2018, the company has repaid Rs 1,62,985 crore on gross basis, and Rs 85,512 crore on net basis. At the end of this quarter company’s borrowings will be down to about Rs 36,000 crore and company’s net debt to equity will be 1.8x.

“It has been Indiabulls Housing‘s long-standing policy to maintain adequate liquidity in cash, cash equivalents, and investments to cover near- to mid-term debt repayments. The company’s management has been proactive in its approach to ALM management and has always planned in advance for bunched up repayments of the nature that we had in this quarter,” it said in the regulatory filing.

The company now plans to focus on growth. All excess collections over debt repayments and all incremental borrowings will now be available for asset growth. The asset-light model has fully matured, and co-lending relationships with eight partner banks for each of whom the company is a strategic relationship contributing significant amount to their total disbursals.

Importantly, being asset-light co-lending, the company need not build large borrowings to support this, and can grow and earn on the entire assets under management (AUM) without building ALM risk.

  • Published On Aug 28, 2023 at 07:15 PM IST

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