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Bajaj Housing Finance has raised INR 20 billion through the reissue of its 7.83% May 2029 bonds, according to bankers involved in the transaction. The housing finance company accepted bids for the issue on June 4 and is expected to offer investors a yield of 8.15%. The bonds have a residual maturity of nearly three years and carry the highest AAA credit rating from Crisil. The fundraising comes amid active participation by financial institutions in India's corporate debt market as companies seek to secure medium-term funding through bond issuances. The transaction adds to a series of debt market deals announced this week, including planned bond offerings by PNB Housing Finance and REC.
Bajaj Housing Finance has accepted bids worth INR 20 billion for the reissue of its 7.83% May 2029 bonds, according to bankers familiar with the transaction, as the housing finance company tapped the domestic debt market to raise medium-term funds.
The company invited commitment bids earlier on June 4 and subsequently accepted subscriptions totalling INR 20 billion. The reissued bonds are expected to be offered at a yield of 8.15%, reflecting prevailing market conditions and investor appetite for highly rated financial sector debt.
The securities have a remaining maturity of approximately two years and 11 months, making them suitable for investors seeking medium-duration fixed-income instruments. The bonds have been assigned a AAA rating by Crisil, indicating the highest degree of safety with respect to the timely servicing of financial obligations.
Bajaj Housing Finance, a major player in India's housing finance sector, regularly accesses capital markets to diversify its funding sources and support lending activities. Debt issuances form an important component of funding strategies for housing finance companies, helping them align borrowing tenures with long-term housing loan portfolios.
The latest transaction comes amid sustained activity in the domestic corporate bond market, where highly rated issuers have continued to attract demand from institutional investors, including mutual funds, insurance companies and pension funds. Stable credit profiles and predictable cash flows have contributed to strong investor interest in debt instruments issued by leading non-banking financial companies and housing finance firms.
Market participants have been closely monitoring borrowing costs and yield movements as issuers evaluate fundraising opportunities in an evolving interest rate environment. For housing finance companies, access to competitively priced debt remains important for maintaining liquidity and supporting future loan disbursements.
The Bajaj Housing Finance issue was one of several debt market transactions reported on June 4. PNB Housing Finance is scheduled to seek bids for a proposed five-year bond issue of up to INR 5 billion on June 5, offering a coupon of 8.35%. State-owned infrastructure financing company REC is also planning a bond sale of up to INR 30 billion, with bidding scheduled for June 8.
The company had not responded to a Reuters request for comment at the time of reporting. The successful completion of the bond reissue underscores continuing investor appetite for highly rated housing finance issuers despite ongoing shifts in funding market conditions.
Source - Reuters
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