Mortgage lender Dewan Housing Finance Corporation 's (DHFL) maiden issue of non-convertible debentures (NCD) worth up to Rs 4,000 crore was fully subscribed today, the very first day of the issue. Talking about the overwhelming response seen by the issue, Kapil Wadhawan, CMD, DHFL it would be a game-changer not only for the company but for the industry as a whole. It shows the appetite in the market for such issuances, which is the first of its kind in the housing finance space. Wadhwan said the money raised from the issue will help them shave off a fair degree of high cost of funds that they borrow from banks and the target is to bring down bank borrowings from the current 50 percent to 30-35 percent by FY17 end. "Till about 2 years ago, bank borrowings which was close to 70% of my total liability, is down to 50%. Post this issue, it will come down by almost 5%. Our targeted number for this financial year end is closer to 30-35%," he said. He is also hopeful of keeping the net interest margins stable at 2.9 percent going forward. "Our net interest margins have been fairly stable at closer to 2.9-2.95% and with this money coming in, and probably a series of such issues planned over the next couple of quarters, my cost of funding may actually come down by more than a 100 bps," said Wadhawan.
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