Indian non-bank finance company Indiabulls Housing Finance Ltd. has closed a loan securitization deal with principal consideration of INR 34.4 billion ($414.5 million) with Davidson Kempner Asia Ltd., two sources close to the situation said. The deal generates an internal rate of return of around 20%, the sources said.
The deal was closed in the last week of August, the sources said.
The current securitization deal includes a mix of wholesale and retail loans originated by Indiabulls Housing Finance Ltd. and its wholly owned subsidiary, Indiabulls Commercial Credit Ltd., the sources said.
Indiabulls Housing Finance has been selling down its developer loan book, housing loans, and retail loans against properties to banks and international investors to improve its asset quality. The company is currently focusing on enhancing the retail portfolio and calibrating with asset-light strategies, including co-lending, assignments, and sell downs, as
reported.
“The de-risking of the business by running down of the wholesale book continues and it will only gather pace over the course of the next six to 12 months,” Gagan Banga, Vice Chairman, Managing Director and CEO of Indiabulls Housing Finance said during the company’s earnings call on Aug. 14, according to the call
transcript
Indiabulls Housing Finance did not respond to email requesting comment. Davidson Kempner was not immediately available to respond to a request for comment.
– Dipika Lalwani, Subrata Panda