Housing finance companies are expected to raise Rs10,000-12,000 crore in the current financial year through listed structured by RMBS Development Company Ltd, a National Housing Bank-promoted entity similar to the likes of Freddie Mac and Fannie Mae.
The fundraising will be done across seven to 10 deals in the current financial year, Sanjay Shukla, managing director of NHB said on Monday. RDCL, which structured one such deal last week, is in talks with a couple of housing finance companies.
RDCL, in which NHB holds the largest stake of 39%, started operations in March 2025. In addition to structuring RMBS deals, RDCL’s scope of activities involve providing liquidity support and credit enhancement, among others.
Shukla was speaking at the sidelines of listing of India’s first residential mortgage-backed securities (RMBS). This involved raising Rs1,000 crore last week through (PTC) maturing in 20 years at a 7.26% coupon, payable monthly. PTCs are debt instruments backed by assets like loans, which in this case was the housing loan portfolio originated by LIC Housing.
Securitisation of loan pools is a popular method among non-banking finance companies. But what sets this particular transaction apart is that price discovery was done through the bidding process on National Stock Exchange’s electronic bidding platform.
“When housing finance companies sell (loan portfolios) to banks at a pre-agreed rate, there is no price discovery. In this structure, there will be price discovery. The bidding will take place on the electronic bidding platform,” Shukla said.