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Mahindra Rural Housing Finance to raise Rs1,900 crore via bonds

Photo: Bloomberg

Photo: Bloomberg

New Delhi: Mahindra Rural Housing Finance Ltd on Friday said it will raise Rs.1,900 crore by issuing bonds on a private placement basis.

“Board of Directors has approved the issue of secured and/or unsecured non-convertible debentures including subordinated debentures for an aggregate amount not exceeding Rs.1,900 crore on a private placement basis,” the company said in a regulatory filing.

Mahindra Rural Housing Finance, a subsidiary of Mahindra and Mahindra Financial Services Ltd, provide home loans primarily in rural areas.

Since inception in April 2007, Mahindra Rural has opened operations in nine states—Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Bihar.

Mahindra and Mahindra Financial Services holds 87.5% equity of the subsidiary, and National Housing Bank, the fully-owned subsidiary of the Reserve Bank of India, holds the remaining 12.5%.