Housing finance company Sammaan Capital (formerly Indiabulls Housing) has successfully raised $300 million (around ₹2,600 crore) through a three-year bond issuance to overseas investors at a coupon rate of 8.95%. This marks the company’s first international issuance under its new brand and the first high-yield bond out of India this fiscal year.
The company aims to diversify its funding sources, with international borrowings accounting for 10% of its total funding following this issue. CEO Gagan Banga said that the company plans further overseas borrowing to reach 10–15% of total funding within the next year, including a potential $500 million loan from a multilateral agency.
“We were prepared for this issue since April but were waiting for the right investors, which we secured now. Our target is to make 10–15% of borrowings from overseas. This bond brings us to 10%,” Banga said.
Deutsche Bank acted as the sole arranger for the bond.
Sammaan Capital currently manages assets worth ₹63,000 crore, with a liabilities book of ₹50,000 crore, of which 10% is funded through foreign sources. The company expects 20% growth in AUM over the coming year.
Sammaan, a mortgage-focused NBFC, operates over 220 branches, providing home loans in the affordable housing segment and loans to MSMEs and small businesses. The company carries an international rating of B+ and rebranded in July 2024.
“Sammaan’s bond is the first from India this fiscal. The last issue was Varanasi Aurangabad NH-2 Tollway (VAH) in February, raising $316 million at 5.90%,” an investment banker noted. Global market volatilities and domestic concerns had kept issuers cautious since then.
This issuance positions Sammaan Capital to strengthen its international funding base and diversify its borrowing sources amid evolving market conditions.
