DHFL NCD Issue opens on May 22, 2018

Chennai, May 21, 2018: Dewan Housing Finance Corporation Limited (“DHFL” or the “Company”), one of India’s leading private sector housing finance companies registered with National Housing Bank (NHB), proposes to open on May 22, 2018, a public issue of up to 12 crore secured redeemable Non-Convertible Debentures (“NCD”) of face value of Rs. 1,000 each, for an amount of Rs. 3,000 crore (“Base Issue Size”) with an option to retain oversubscription of up to Rs. 9,000 crore aggregating up to Rs. 12,000 crore (“Tranche 1 Issue Limit”) (“Tranche 1 Issue”) and is being offered by way of the Tranche 1 Prospectus dated May 14, 2018, containing, Inter Alia, the terms and conditions of this Tranche 1 Issue (“Tranche 1 Prospectus”), which should be read together with the Shelf Prospectus dated May 14, 2018 (“Shelf Prospectus”) filed with the Registrar of Companies, Maharashtra, Mumbai (“ROC”), Stock Exchanges and Securities and Exchange Board of India (“SEBI”). The Shelf Prospectus and this Tranche 1 Prospectus constitutes the Prospectus (“Prospectus”).

The Issue is scheduled to close on June 4, 2018 with an option of early closure or extension as decided by the Board of Directors of the Company (“Board”) or the NCD Public Issue Committee.

Triple AAA Rating
The NCDs proposed to be issued have been rated ‘CARE AAA; Stable (Triple A; Outlook: Stable)’ for an amount upto Rs. 15,000 crore, by CARE Ratings Limited (“CARE”) vide their letter dated April 27, 2018 and ‘BWR AAA (Pronounced as BWR Triple A), Outlook: Stable’ (for an amount upto Rs. 15,000 crore, by Brickwork Ratings India Private Limited (“Brickwork”) vide their letter dated April 27, 2018. The rating of CARE AAA; Stable by CARE and BWR AAA, Outlook: Stable’ by Brickwork indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations.

Mr. Santosh Sharma, Chief Financial Officer, DHFL, said,
“Over the last few years, DHFL has been reporting high growth in an increasingly competitive landscape. These are exciting times for DHFL as it strengthens its commitment to actively expand financial inclusion across India and provide greater impetus to the Government’s mission of Housing for All by 2022. The launch of DHFL’s third public issue NCD at this critical phase of growth is set to provide a strong thrust to the company’s growth plans as we progress towards the next phase of high growth. It also allows us to diversify our borrowing portfolio..

In line with DHFL’s efforts to always bring value-addition to its stakeholders, the company has introduced a floater rate NCD which is benchmarked to Overnight MIBOR. Investors in MIBOR linked NCDs will receive interest based on Overnight MIBOR rate published by FBIL compounded daily and payable annually. We are also offering an attractive interest rate of upto 9.10% p.a., one-time additional incentive of upto 1.00% to initial subscribers on maturity and an additional interest of 0.10% p.a for senior citizens. Backed by strong stakeholder trust and our unwavering commitment towards enabling affordable housing dreams, I am confident that DHFL will once again report yet another successful NCD issuance to achieve its ambitious growth plans.”

The minimum application amount is Rs.10,000 collectively across all options on NCDs and in multiples of One (1) NCD after the minimum application. Allotment is on a first-come-first-serve basis (except on the date of oversubscription, if any, when all the investors applying on the said date will get allotment on a proportionate basis). Investors have an option to apply for NCDs in dematerialized as well as in physical form.