Anil Ambani's Reliance Home Finance said the company has re-financed non-convertible debentures (NCDs) worth Rs 400 crore that matured on Friday, and that the maturity of these NSDs had been extended till October 31. The company, in a statement, added it also paid interest due on the same.
The company said in view of the continuing severe liquidity crisis in the sector, as also recognised by the Reserve Bank of India (RBI), the maturity of certain NCDs worth Rs 400 crore had been extended with the formal written consent of the debenture trustees and NCD holders concerned.
RHF said maturity on the scheme had been extended "purely to address timing mismatches in receipt of proceeds from the ongoing monetisation of retail asset pools of the company". The company also clarified that in view of the extension of the debt instrument by mutual consent, there was "no question of any default".
RHFL said it had monetised over Rs 5,000 crore of retail assets and would continue to do so to meet its debt servicing obligations, in an "extraordinary situation" where all lenders had "completely frozen disbursements to private sector home finance companies for nine months".
Meanwhile, Reliance Mutual Fund also issued a statement saying RHF had paid the interest due on the instrument. "On June 28, 2019, a few schemes of Reliance Mutual Fund had maturities out of the investments in the Non-Convertible Debentures (NCD) of Reliance Home Finance (RHF) to the tune of Rs 400 crore. RHF has paid interest that was due, and the maturity of the said instrument has been extended to 31st Oct 2019 with additional cover and coupon," Reliance Mutual Fund said.
The Reliance Mutual Fund schemes that had instruments in NCDs of Reliance Home Finance included Reliance Ultra Short Duration Fund, Reliance Credit Risk Fund and Reliance Strategic Debt Fund. The Reliance ADAG group had exited the mutual fund business last month after selling its entire stake to Japanese company Nippon.
Three rating agencies CARE, ICRA and Brickwork had recently downgraded the borrowings of RCap and its subsidiaries. CARE lowered the rating of some of RCap's debt instruments to 'D', which means the debt facility is either in default or is expected to be so soon. Anil Ambani, who was the 6th richest man in the world with a wealth of $42 billion in 2008, has now crashed out of the billionaire club.
Edited by Manoj Sharma