Indiabulls Housing Finance Ltd (IBHFL) has raised ₹2,200 crore from Oaktree Capital by pledging a part of its real estate loans to the global stressed assets investor, two people directly aware of the transaction said, requesting anonymity.
The transaction is expected to breathe a fresh lease of life into Indiabulls Housing, which has been in talks with investors for several months. The fresh funds are expected to be used to meet payment obligations.
As part of the terms of the deal, Oaktree will buy non-convertible debentures (NCD) to be sold by Indiabulls Housing, according to the people cited above. The NCDs will be guaranteed by an underlying real estate portfolio valued close to ₹4,500 crore, comprising loan exposures to developers such as Wadhwa Group and Sheth Developers.
A spokesperson for Indiabulls Housing did not respond to an email query. A spokesperson for Oaktree declined to comment.
In a similar transaction last year, now bankrupt Dewan Housing Finance Ltd sold wholesale loans worth ₹1,375 crore to Oaktree.
Indiabulls Housing’s outstanding loan book stood at ₹1.02 lakh crore, as of December 31, 2019, with an average cost of borrowing at 8.8%, according to the public filing by the housing finance company.
