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Public Issue of Secured Redeemable Non-Convertible Debentures Public Issue Opens on December 12, 2013 12.15% p.a. yield with Monthly Interest Secured against.

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Presentation on theme: "Public Issue of Secured Redeemable Non-Convertible Debentures Public Issue Opens on December 12, 2013 12.15% p.a. yield with Monthly Interest Secured against."— Presentation transcript:

1 Public Issue of Secured Redeemable Non-Convertible Debentures Public Issue Opens on December 12, 2013 12.15% p.a. yield with Monthly Interest Secured against Home, Mortgage receivables This presentation is only for information purpose and not solicitation for investment. For investment decisions, please refer to Prospectus Please read disclaimer in this presentation

2 Why invest in IIFL Home Bonds?  IIHFL is a Housing Finance Company registered with National Housing Bank (NHB)  A wholly owned subsidiary of India Infoline Finance Limited (IIFL)  Lending products include Mortgage Loans, which includes Retail Mortgage Loans and Corporate Mortgage Loans Loans Housing Loans Finance for purchase of flats Construction of houses Extension and improvement in flats / homes Acquiring plots of land Loans Against Property Working capital Requirements Business Use Acquisition of new property Financing construction projects India Infoline Housing Finance Limited (IIHFL) 2

3 Why invest in IIFL Home Bonds? 3 * Invest at an attractive yield of 12.15% * p.a. and Monthly Interest  11.52% p.a. coupon with Monthly income  Bonds are fully secured and carry maturity of 5 years  No Call & Put Option available, which means company cannot prematurely redeem the bonds and the interest rate offered remains fixed  Interest on application money on the amount allocated at the rate of 11.52% p.a.  Minimum application size as low as Rs10,000  Minors can apply * Assuming re-investment rate @11.52% p.a., monthly compounded

4 Why invest in IIFL Home Bonds? Rating indicates high degree of safety and very low credit risk  ‘CRISIL AA-/Stable’ by CRISIL  ‘CARE AA-’ by CARE  Stable rating for the maiden public issue of Bonds for 5 years stands testimony to IIFHL’s robust business model  Indicates high degree of safety regarding timely servicing of financial obligation  Such instruments carry very low credit risk  Highly rated for short term debt as well: ‘CRISIL A1+’ by CRISIL and ‘[ICRA]A1+’ by ICRA 4

5 Why invest in IIFL Home Bonds? Bonds are secured and classified as senior debt  IIFL Home Bonds are fully secured against home and mortgage receivables  These Bonds enjoy repayment preference over unsecured creditors as well as preference and equity capital  Loan to value (LTV) ratio for the loan book conservative at 50.2 % as on September 30, 2013  Security is entrusted with an independent trustee (IDBI Trustee). Interest servicing is also monitored by them Besides, 100% of the loan book is secured 5

6 Why invest in IIFL Home Bonds? Credible Board, Chaired by ex-Chairman of National Housing Bank (NHB), the regulator for housing finance Nirmal Jain Non-Executive Director Founder & Chairman, IIFL Group, CA, Cost Accountant, PGDBM (IIMA) R Venkataraman Non-Executive Director Co-Promoter & MD, IIFL Group, B.Tech (IIT Kharagpur), PGDBM (IIMB) Mukesh Kumar Singh Non-Executive Director MBA (Welingkar Institute), Mechanical Engineer The Board has rich and varied experience in the banking and finance sector and has an impeccable track record S Sridhar Non-Executive Director & Chairman Former Chairman, Central Bank of India and NHB, Former Executive Director, Exim Bank and SBI R Mohan Non-Executive Director CA, Former GM at SEBI, Formerly at Carborundum Universal Ltd Kranti Sinha Independent Director Former Director and Chief Executive of LIC Housing Finance Ltd., Dty. President, Insurance Institute of India 6

7 Why invest in IIFL Home Bonds? IIFL Group’s Advisory Board comprises stalwarts with long and immaculate careers Ashok Jha Retired IAS, Former Finance Secretary, Former Secretary, DEA and DIPP Keki Mistry Vice Chairman & CEO, HDFC Ltd., Board member, IL&FS, BSE Limited, Sun Pharmaceuticals Industries Limited among others Satpal Khattar Founder, Khattar Wong & Partners, Chairman, Singapore Business Federation, Awarded Padma Shri in 2011 Keki Dadiseth Former Chairman of Hindustan Unilever Limited & former Director Unilever Plc. Somasekhar Sundaresan Partner M/s J Sagar Associates, Permanent invitee to the executive committee of FICCI 7 S Venkatachalam Chairman, Oracle India, Career banker with Citi bank, Central Board Member, SBI,Canara Robeco AMC among others They are luminaries from complimentary fields to guide the Company on strategy on key challenges and opportunities

8 Why invest in IIFL Home Bonds? Robust credit process  Conservative lending policy: 65% of value of property for LAP and up to 90% for home loans  Three credit bureau memberships in India – CIBIL, Experian and Equifax  Fraud control application system ‘Hunter’ for identifying fraudulent borrowers at the application stage  Credit and financial background check on each borrower and provide legal and technical evaluation of security  Audit function reports independently to the Board. All loans go through an audit process at a transaction level  External collection agencies are selected based on their prior experience, reputation and market references Since inception, IIHFL has been providing only secured finance 8

9 Why invest in IIFL Home Bonds? IIFL * has a diversified lending portfolio High growth with margin of safety and stable asset quality IIFL’s loan book (IIHFL’s Parent)  IIHFL operating income and PAT witnessed CAGR of 95.6% and 92.6% respectively from FY10-FY13  IIHFL’s net NPA stood at negligible 0.22% at the end of FY13  Capital adequacy at 49.4% as on Sep ‘13 is significantly higher than regulatory requirement of 12% * IIFL is the holding company of IIHFL (the Issuer) and is RBI registered systemically important non-deposit taking NBFC. Mortgages Gold Loans Commercial Vehicle Finance Healthcare Finance Capital Market Finance Source: Prospectus 9

10 Why invest in IIFL Home Bonds? Leverages on the strong parentage and brand recall of the India Infoline Group Diversified financial services company with a pan-India presence Distribution network across 3,500 business locations in over 800 cities Listed on BSE and NSE Well established brand among retail, institutional and corporate investors Brand associated with trust, knowledge, leadership and high quality services Global footprint: New York, London, Geneva, Hong Kong, Singapore, Dubai, Mauritius, Colombo Consumer Finance Wealth Management Retail financial product distribution Capital Market Advisory Institutional Equities Investment Banking India Infoline Ltd holds 98.87% in IIFL (India Infoline Finance Ltd), the NBFC subsidiary. IIFL owns 100% of IIHFL 10

11 Why invest in IIFL Home Bonds? Group’s listed holding company has consistent track record of profit and dividends since listing in 2005 All-time high profit in FY13 Growing and diversified revenue base Source: Prospectus, India Infoline Annual Reports Robust networth of over Rs2 billionHealthy return on equity 11 Half year

12 Why invest in IIFL Home Bonds? Housing Finance : Key demand drivers HFCs to continue to gain market share in Housing Finance due to strong origination skills, focused approach, targeting special customer segments and superior customer service  Population growth backed by favourable demographics : Number of households to rise with change in age-mix, growing nuclear families  Housing Stock shortage : Urban shortage estimated to stand at 18.78 million units (March 2012)  Higher Penetration of Housing Finance : Penetration in urban areas stood at 41.2% in FY13 and rural areas at only 8.3%  Tax Benefits: Government has been offering several tax concessions to spur housing demand  Income Growth - Rising affordability Source: CRISIL Report, Retail Finance – Housing, October 2013 12

13 Why invest in IIFL Home Bonds? Bonds to be listed on NSE and BSE  No TDS (tax deducted at source) if bonds held in demat form, therefore cash flow is full 11.52%  Investors can sell bonds at prevailing market rates on the two exchanges IIFL Bonds 2011, 2012 and 2013 received overwhelming response and are being serviced timely IIFL Bonds 2013 mobilised Rs10bn+, making it the largest public bond issue by a private issuer in the last four years*  Public Issue Opens on December 12, 2013  Allotment on a first‐come‐first‐serve basis, calculated at the end of the day  Minimum application size Rs10,000; Minors can apply * As per Prime Database 13

14 Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to general business plans and strategy of India Infoline Housing Finance Limited (“Company” or “Issuer”) its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in Company 's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation is based on Prospectus dated December 02, 2013 and does not constitute an offer, invitation or solicitation to purchase or sell, any securities of Company and should not be considered a recommendation for any investor to subscribe or purchase any of Company's securities including non convertible debentures. Neither this presentation nor any other documentation or information (or any part thereof), delivered or supplied under or in relation to the non convertible debentures or other securities of the Issuer shall be deemed to constitute an offer or an invitation by or on behalf of Issuer. Issuer, the Lead managers and Co-Lead Managers as such, makes no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified, is only current as on the date of the Prospectus. Issuer, the Lead Managers and Co-Lead Managers assume no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. Issuer may alter, modify or otherwise change in any manner the content of this presentation without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. All figures mentioned here, expect otherwise mentioned are in INR million. The Company’s NCDs will not be offered, issued or sold in any country outside the jurisdiction of India, including the United States of America, whether pursuant to an exemption from, or in a transaction not subject to the registration requirements of applicable securities laws of any such jurisdiction. The Prospectus will not, however constitute an offer to sell or an invitation to subscribe for the NCDs offered hereby in any jurisdiction other than India to any person to whom it is unlawful to make an offer or invitation in such jurisdiction. Accordingly these materials are not directed at or accessible by these persons. Any person into whose possession the Prospectus comes is required to inform himself or herself about, and to observe, any such restrictions. Such persons shall refer to the specific Disclaimer as displayed in the Prospectus and the Company’s website in this regard. The information presented here is not an offer or solicitation of any offer to purchase or sell any equity, non convertible debentures or any other security of Issuer. Issuer is proposing, subject to market conditions and other considerations, a public issue of non convertible debentures (‘NCDs’). The Draft Prospectus and the Prospectus are available on the website of the National Stock Exchange of India Limited, BSE Limited, SEBI, Lead Managers and Co-Lead Managers. Any potential investor should note that investment in debt securities involves risk. For further details, please see the section titled “Risk Factors” in the Prospectus. Investors are urged to take any decision to invest in the NCDs issued pursuant to the Prospectus solely on the basis of the disclosures and disclaimers made therein. Disclaimer

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