Aadhar Housing Finance Announces NCD Issue at 9.6% yield

Aadhaar Housing Finance Ltd. (a DHFL Group Company) has announced the issue of its first tranche of secured redeemable non-convertible debentures from 14th September 2018 to 28th September. The base size of the current tranche has been fixed at Rs. 500 crore with the option of retaining over subscription of up to Rs. 900 crores.

In case you want to participate, a demat account is mandatory for investing in this NCD. You will need to purchase a minimum of 10 NCDs to participate i.e. minimum initial investment is Rs. 10,000 and the maturity/redemption date is 3 years from date of allotment. No put and call options are applicable to these secured redeemable NCDs.

NCDs are fixed return schemes and the current tranche I of Aadhar Housing Finance NCD will provide you with maturity value of Rs. 1,316.85 for each Rs. 1000 NCD, which equals an effective yield of 9.6%. In case you want to sell your NCD holdings prior to maturity, you can do so on the Bombay Stock Exchange (BSE), where this instrument will be is listed.

 Aadhaar Housing Finance NCDs have been rated BWR AA+ (SO), Outlook: Stable by Brickworks Ratings India. Additionally, Care Ratings has provided a rating of CARE AA+ (SO), Outlook: Stable to this NCD. These ratings are among the highest for corporate debt instruments and indicate relatively low levels of credit risk for the investors with high probability of timely repayment of financial obligations.  

Key Details of the Aadhar Housing Finance NCD Trache I:

NCD Type	Secured Redeemable NCD
Rating	CARE AA+ (SO), Outlook : Stable / BWR AA+ (SO), Outlook: Stable
Minimum Investment	Rs. 10,000
Face Value/Issue Price of each NCD	Rs. 1000
Tranche I Issue Period	14th September to 18th September
Maturity Period	3 years (from allotment date)
Effective Yield	9.6% p.a.

Tax

Interest on NCDs is fully taxable at your slab rate. No TDS is deducted on the same, provided the NCDs are listed on the stock exchanges. Aadhar Housing Finance has proposed to list its NCDs on the stock exchanges.  

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Date: 13 SEP 2018