Indiabulls Housing Finance exits OakNorth Holdings for Rs 3,049 crore

NEW DELHI: Indiabulls Housing Finance on Wednesday said it has exited from UK-based OakNorth Holdings for about Rs 3,049 crore. In November 2015, Indiabulls Housing Finance acquired a 39.76 per cent stake in OakNorth Holdings Limited for Rs 663 crore (USD 100 million), the company said in a regulatory filing.

“Through various rounds of secondary market sale, the company has completely sold off its stake and has realised monies of Rs 3,049 crore (USD 450 million). Investment in OakNorth Holdings has yielded the company an annualized IRR of 48 per cent over 6 years,” it said.

For dollar bond repayment maturing in May 2022, the company has transferred the second tranche of the reserve amount Rs 682 crore to the lender repayment trust.

“The Trustee in turn will create a fixed deposit using the reserve amount with a Scheduled Commercial Bank, and such reserve amounts shall be utilised for the scheduled redemption of the bonds in compliance with applicable laws. The maturity of the fixed deposits will be co-terminus with the maturity date of the Bonds,” it said.

At maturity, the fixed deposit proceeds will be used to discharge the company’s liabilities to the holders of the bonds, it said, adding fixed deposit now covers 50 per cent of the total dollar bond maturity value.