Mumbai, May 5 (IANS) In a major development for India’s housing finance and debt markets, the country’s first mortgage-backed Pass-Through Certificates (PTCs) were officially listed on the National Stock Exchange (NSE) on Monday.
These PTCs have been structured by RMBS Development Company Limited and are backed by a pool of housing loans originated by LIC Housing Finance Limited.
The issue size stood at Rs 1,000 crore, comprising 1,00,000 PTCs with a face value of Rs 1,00,000 each. The offering was fully subscribed, reflecting strong investor interest.
This landmark issuance is also the first of its kind in India, where the coupon rate was discovered through the Electronic Book Provider (EBP) platform of the NSE.
The final coupon was set at 7.26 per cent per annum, and the instruments have a tenure of nearly 20 years.
The PTCs carry a top-tier AAA(SO) rating from both CRISIL and CARE Ratings, and are issued in dematerialised form, making them tradable on the secondary market.
The listing was carried out by M. Nagaraju, Secretary, Department of Financial Services, Ministry of Finance, who marked the occasion by ringing the ceremonial bell.
In his remarks at the event, Nagaraju highlighted the crucial role of the housing and housing finance sectors in the broader economic landscape.
He noted that housing has deep linkages with other industries, including infrastructure, and emphasised the urgent need to meet the country’s growing housing demand to support overall economic growth.
He further added that securitisation, through instruments like these PTCs, can serve as a bridge between the housing finance market and the broader debt market.
Stressing the importance of Residential Mortgage-Backed Securities (RMBS), Nagaraju said such instruments could be a game-changer for boosting liquidity and supporting the growth of the housing finance ecosystem in India.
The listing ceremony was attended by several top officials from banks, housing finance companies, and other financial institutions, marking a significant step toward deepening the securitisation market and broadening investment opportunities in the country.
–IANS
pk/vd
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
