Sammaan Capital raises $300 million via overseas bond issue

Mumbai: Housing finance company Sammaan Capital (erstwhile Indiabulls Housing) has raised $300 million (about ₹2,600 cr) by issuing three-year bonds to overseas investors in its first international issuance in its new avatar.

The company raised the money at 8.95% from investors in what is also the first high yield issue out of India this fiscal.

CEO Gagan Banga said the fund raise is aimed at diversifying the funding base of the company which after this issue will ensure that 10% of the company's funding comes from international sources.


"We were prepared for this issue since April but were waiting for the right kind of investors which we got now. Our target is making 10% to 15% of borrowings from overseas. This will make it 10%. In the next 12 months we will raise a $500 million loan mostly from a multilateral agency which will achieve our target," Banga said.

Deutsche Bank, the sole arranger for this bond, declined to comment. Sammaan's assets under management (AUM) currently are at ₹63,000 crore and Banga expects the company's AUM to grow at 20%. The company's liabilities book is currently at ₹50,000 crore, 10% of which is from foreign sources.

Sammaan, formerly known as Indiabulls Housing is a mortgage-focused non-banking financial company (NBFC). Its international rating is B+. It changed its avataar in July 2024 and has a network of over 220 branches which offers home loans in the affordable housing segment.

The company also offers loans to MSMEs/small businesses for working capital.

"Sammaan's bond is the first from India this fiscal. Varanasi Aurangabad NH-2 Tollway (VAH) was the last issue a few months ago. Since then global volatilities, growth concerns and domestic issues have kept issuers on the sidelines. It remains to be seen whether we see more issues in the next few months," said an investment banker.

VAH, backed by ROADIS, raised $316 million at 5.90% coupon at the end of February. The project company responsible for expanding the 192.4 km Varanasi to Aurangabad segment of NH-2.