Calcutta, Sept. 12: Indiabulls Housing Finance is planning to restructure its loan portfolio and cut down borrowing costs by around 30-40 basis points through the issue of non-convertible debentures (NCDs) that is expected to raise Rs 7,000 crore.

As of June 30, the company's total borrowing stood at around Rs 66,230 crore, of which the share of bank loans was 47 per cent followed by debentures and securities at 40 per cent. Total borrowing stood at Rs 50,860 crore at the end of June 2015. The share of debentures and securities in the funding mix has been gradually going up over the last three years.

"Part of the proceeds from the retail NCD issue would be used to restructure our existing loan. We are targeting to bring down our average cost of debt by 30-40 basis points by this fiscal from the current levels," Indiabulls chief manager (analytics) Aman Gudral said today. The average cost of borrowing now stands at 9.3 per cent.

The housing finance company is set to hit the capital market with the NCD issue on September 15. The coupon rates will vary in the range of 8.55 per cent to 9.15 per cent per annum depending on the tenure of 3-10 years.