New Delhi, Aug. 26 (PTI): LIC Housing Finance is planning to list on the US bourses after 2-3 years and plans to mop up over Rs 1,000 crore through bonds issue and another Rs 200 crore by way of mortgaged-backed securities by this fiscal.
“Our long term decision is to go for an ADR issue and list it on the US bourses, in order to sustain growth and tap cheaper funds,” LIC Housing Finance CEO Kranti Sinha said here today.
He declined to give a time frame but said the company has appointed PricewaterhouseCoopers (PwC) for switching to the internationally acclaimed Generally Accepted Accounting Practices of the United States.
The move is being considered to raise cheaper capital from the international market.
The housing arm of Life Insurance Corporation had set a target to mobilise Rs 1,200 crore this fiscal to fund its lending operations.
“We have plans to mop up over Rs 1,000 crore in the coming months of this fiscal. We have earlier raised Rs 25 crore and recently mopped up Rs 100 crore through private placement of non-convertible debentures,” Sinha said.
The debt issues would be in tranches, spread over the remaining portion of this fiscal.
The debt papers have been rated at highest safety “AAA” rating by Crisil and CARE.
Sinha said the company also plans to raise another Rs 200 crore through mortgage-backed securities (MBS) in November-December this year.
“We will approach National Housing Bank (NHB) for their participation in the issue after the MBS is structured,” the CEO said.
The move to mop up Rs 1,000 crore comes in the light of 40 per cent loan disbursement target set by LIC Housing Finance for this fiscal. “We are targeting 40 per cent higher business from Rs 2,500 crore disbursed in the last fiscal,” Sinha said.
The company also targets to maintain 30 per cent growth in net profit, which stood at Rs 150 crore last fiscal.
Asked whether the company would slash housing rates further, Sinha said LIC Housing Finance offers one of the competitive rates of 10 per cent monthly rest for a loan up to Rs 1 crore for a 6-year period while it was 10.5 per cent for 6-12 years.
The company offers life insurance coverage of LIC to those who avail of loans and a personal loan facility against the mortgaged property.