Mahindra Rural Housing Finance to Raise Rs 1,900 Crore via Bonds

New Delhi: Mahindra Rural Housing Finance on Friday said it will raise Rs 1,900 crore by issuing bonds on a private placement basis.

"Board of Directors...has approved the issue of secured and/or unsecured non-convertible debentures including subordinated debentures for an aggregate amount not exceeding Rs 1,900 crore on a private placement basis", the company said in a regulatory filing.

Mahindra Rural Housing Finance Limited (MRHFL), a subsidiary of Mahindra and Mahindra Financial Services Limited (MMFSL), provides home loans primarily in rural areas.

Since inception in April 2007, MRHFL opened operations in nine states: Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Bihar.

MMFSL holds 87.5 per cent of the equity of MRHFL and the National Housing Bank, the fully-owned subsidiary of the Reserve Bank of India, holds the remaining 12.5 per cent.