Indiabulls Housing Finance ropes in Oaktree Capital
Real Estate

Indiabulls Housing Finance ropes in Oaktree Capital

Indiabulls Housing Finance will reach a 750-billion-dollar agreement with international investor Oaktree Capital to purchase a portion of the loans provided by the non-banking financing firm to support various developers.

A jointly created special purpose vehicle (SPV) will offer securities like debentures that Indiabulls and Oaktree will subscribe to in order to inject loan money.

According to those familiar with the scheme, the SPV has already been established, and the funding infusion is anticipated to occur over the next weeks.

This joint venture will get investments totaling 730,000 million dollars from Oaktree Capital and 20,000 million dollars from Indiabulls Home Finance.

One of the individuals cited above stated, "Oaktree Capital will hold a 60% ownership in this newly constituted firm, while the balance will be with Indiabulls Housing Finance in keeping with their capital commitment."

"The fundamental terms of the loans would stay unchanged, and the loans that would be acquired, along with underlying mortgaged properties, are not stressed loans," he stated.

By this agreement, the joint entity will purchase the loans that Indiabulls Housing Finance provided to developers, giving the NBFC a quick exit and cash.

The developers are required to pay back these loans over time, contingent upon the project's completion and the conclusion of the sales cycle. When the recovery occurs, the SPV will subsequently pay back the debentures.

Certain financial organisations have recently entered into more complicated agreements by establishing alternative investment funds with foreign investors, where the latter had the first claim to recovery. Developers who issued debentures to the AIF utilised the borrowed capital to pay back the finance business, while the money pooled into the AlFs was used to support builders who were exhibiting early symptoms of stress.

In contrast to the current transaction, past transactions involved senior notes held by overseas investors who were the first to obtain money distributed by the fund. Such senior-junior transactions, however, have recently come to an end after some banks and real estate funds caught the notice of the capital market regulator.

Indiabulls Housing Finance will reach a 750-billion-dollar agreement with international investor Oaktree Capital to purchase a portion of the loans provided by the non-banking financing firm to support various developers. A jointly created special purpose vehicle (SPV) will offer securities like debentures that Indiabulls and Oaktree will subscribe to in order to inject loan money. According to those familiar with the scheme, the SPV has already been established, and the funding infusion is anticipated to occur over the next weeks. This joint venture will get investments totaling 730,000 million dollars from Oaktree Capital and 20,000 million dollars from Indiabulls Home Finance. One of the individuals cited above stated, Oaktree Capital will hold a 60% ownership in this newly constituted firm, while the balance will be with Indiabulls Housing Finance in keeping with their capital commitment. The fundamental terms of the loans would stay unchanged, and the loans that would be acquired, along with underlying mortgaged properties, are not stressed loans, he stated. By this agreement, the joint entity will purchase the loans that Indiabulls Housing Finance provided to developers, giving the NBFC a quick exit and cash. The developers are required to pay back these loans over time, contingent upon the project's completion and the conclusion of the sales cycle. When the recovery occurs, the SPV will subsequently pay back the debentures. Certain financial organisations have recently entered into more complicated agreements by establishing alternative investment funds with foreign investors, where the latter had the first claim to recovery. Developers who issued debentures to the AIF utilised the borrowed capital to pay back the finance business, while the money pooled into the AlFs was used to support builders who were exhibiting early symptoms of stress. In contrast to the current transaction, past transactions involved senior notes held by overseas investors who were the first to obtain money distributed by the fund. Such senior-junior transactions, however, have recently come to an end after some banks and real estate funds caught the notice of the capital market regulator.

Next Story
Infrastructure Transport

Odisha to Develop Four New Airstrips in Western Region

The Odisha government has announced plans to develop four new airstrips in western Odisha, increasing the region’s total number of airports to eight. The new airstrips will be located at Jamadarpali (Sambalpur), Satibhata (Bargarh), Gotma (Nuapada), and Tusura (Balangir), as confirmed by Transport Minister Bibhuti Jena in response to a query from Balangir MLA Kalikesh Singh Deo in the state assembly. Currently, western Odisha has four operational airports—Jeypore (Koraput), Veer Surendra Sai Airport (Jharsuguda), a small airport in Rourkela (Sundargarh district), and an airstrip at Utkela..

Next Story
Infrastructure Energy

Western Coalfields Bids for Two Coal Blocks in Commercial Auction

In a strategic move to overcome limited reserves and challenging geo-mining conditions, Western Coalfields Ltd (WCL) has participated in the bidding for two coal blocks under the 11th tranche of the commercial coal blocks auction, marking the first-ever participation of a Coal India subsidiary in such an auction. WCL has placed bids for the Bandhak West and Dahegaon Makardhokra IV non-coking coal blocks, both located in Maharashtra and close to the company’s existing mining operations. Chairman and Managing Director Jai Prakash Dwivedi highlighted that securing these blocks would allow WCL ..

Next Story
Infrastructure Urban

Assam Cabinet Approves Major Investments, Urban Development, and Policy Reforms

The Assam state Cabinet, led by Chief Minister Himanta Biswa Sarma, has approved a series of strategic investments, urban development projects, healthcare reforms, and policy updates in the textile and biotechnology sectors. A key highlight of the meeting was the approval of Memorandums of Understanding (MoUs) set to be signed at the upcoming Advantage Assam Summit. The summit, Assam’s premier global investment forum, aims to position the state as a major economic hub in the Northeast by attracting investments across industries such as manufacturing, logistics, IT, and renewable energy. Hav..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?