Mahindra and Mahindra Financial Services Ltd. are looking to raise Rs. 10,000-15,000 crore this fiscal year via multiple routes including a bond sale, informed Ramesh G.Iyer, company’s vice chairman and managing director on Monday.
Mahindra Financial is expecting Rs. 24,000 to come from the repayment of loans. The balance has been strategized to raise from the sale of bonds, banks, and financial institutions.
The company is looking forward to injecting fresh capital that could reinforce lending to Rs. 35,000-37,000 crore this year, Iyer informed.
The company’s shareholders have already cleared an enabling resolution to raise up to Rs. 40,000 crore and the rural non-banking finance firm has plans to raise up to $300 million from rupee-denominated offshore debt instruments.
Iyer said while referring to masala bonds,
Within next few weeks, we will have clarity on how we are going to proceed. The company is ready and it will decide on the overseas bond sale based on interest rate.
Mahindra Financial, which has its 51.19% stakes acquired by Mahindra and Mahindra Ltd, is a rural non-banking financial company that has provided employment to over 20,000 people and has about 1200 branches spread across India.
The company’s subsidiary Mahindra Rural Housing Finance Ltd. deals with providing small loans for home improvement. The unit has a loan portfolio of around Rs. 6,700 crore and typically makes a loan of Rs.1-1.25 lakh repayable over 3-5 years.
The firm is also engaged in making loan purchases for rural homes and the segment currently accounts for 2-3% of the housing loan portfolio. Keen on expanding its portfolio, the company will now focus on making bigger loans of Rs. 6-8 lakh for purchase of affordable homes in rural areas.