Bond Yield Spike Sends Indiabulls Housing to Banks for Funds
- Mortgage lender to rely on loans, commercial paper for funds
- Credit market woes has sapped demand for shadow banks’ bonds
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Indiabulls Housing Finance Ltd. plans to rely more on bank loans and commercial paper to meet its funding needs because of waning appetite for bonds sold by Indian shadow lenders, according to the Managing Director of the financier.
While the lender itself hasn’t had a large bond issuance since July because of the troubles plaguing the industry, an attempt by its consumer finance unit to raise at least 1 billion rupees ($14 million) met with poor response last month.