Through a tax-free bond issue, the National Housing Bank is planning to raise Rs 2,100 crore. The bond will be issued in tenors of 10, 15 and 20 years. NHB, the regulator for housing finance companies, was permitted this year to issue tax-free bonds of up to Rs 3,000 crore.
Of the total Rs 3,000 crore, the company has already raised Rs 900 crore through private placement.
Recently, NHB had invested Rs 6.25 crore in Mahindra Rural Housing Finance in its rights issue of R50 crore. NHB’s investment is based on its 12.5 per cent holding in MRFHL.