Home First Finance Completes Rs 150 Crore NCD Issuance

Home First Finance Company India Ltd has issued 15,000 senior, secured, rated, listed, taxable, redeemable, transferable non-convertible debentures (NCDs) aggregating Rs 150 crore.

Reader Takeaway: Strong asset cover ensures security, while floating rate structure offers flexibility for the housing finance lender.

What just happened

The company completed the private placement of NCDs on August 28, 2026. The instrument, with a face value of Rs 1,00,000 each, was subscribed by Kotak Mahindra Bank Ltd. The tenure of the debentures is 59 months and 25 days, with maturity set for August 22, 2031.

Why this matters

This capital raise allows Home First Finance to bolster its resources with long-term debt. By securing funds through the wholesale debt market, the company can effectively manage its interest rate risks and liquidity requirements. The inclusion of Kotak Mahindra Bank as an allottee signals institutional confidence in the company’s credit profile.

Security and Covenants

The NCDs are backed by a first-ranking pari passu continuing charge over the receivables of the company. A critical covenant for investors is the maintenance of an asset cover of at least 1.11 times the outstanding value throughout the tenure of the debentures.

What changes now

Interest on the debentures is set on a floating basis, calculated as the FBIL 3M MIBOR-OIS plus a 2.16% spread. The current coupon rate stands at 7.55% per annum, with interest payments scheduled on a quarterly basis. The company plans to list these debentures on the Wholesale Debt Market (WDM) segment of the BSE Limited, enhancing transparency for debt market participants.