Housing finance company Reliance Home Finance Ltd on Saturday said the maturity of certain non-convertible debentures (NCD) totalling Rs 400 crore has been extended till October 31.
In a statement issued here, the company said the extension of the maturity date has been done with the formal written consent of the concerned Debenture Trustees and NCD holders.
According to the company, extension of maturities by mutual consent is a recognised global practice to deal with severe dislocations in capital markets, and does not in any sense constitute a default.
"The extension of maturity has been made purely to address timing mismatches in receipt of proceeds from the ongoing monetisation of retail asset pools of the company," it said.
Reliance Home Finance has already monetised over Rs 5,000 crore of retail assets, and will continue to do so to meet its debt servicing obligations.
"The housing finance sector is dealing with an extraordinary situation where all categories of lenders in the country have completely frozen new lending to private sector companies for nine long months, leading to a severe adverse impact on economic growth and a potential systemic threat to the stability of the Indian financial system," the statement added.