India's 1st mortgage-backed pass-through certificates listed on NSE

Mumbai, May 5 (IANS) In a major development for India's housing finance and debt markets, the country’s first mortgage-backed Pass-Through Certificates (PTCs) were officially listed on the National Stock Exchange (NSE) on Monday.

These PTCs have been structured by RMBS Development Company Limited and are backed by a pool of housing loans originated by LIC Housing Finance Limited.

The issue size stood at Rs 1,000 crore, comprising 1,00,000 PTCs with a face value of Rs 1,00,000 each. The offering was fully subscribed, reflecting strong investor interest.

This landmark issuance is also the first of its kind in India, where the coupon rate was discovered through the Electronic Book Provider (EBP) platform of the NSE.

The final coupon was set at 7.26 per cent per annum, and the instruments have a tenure of nearly 20 years.

The PTCs carry a top-tier AAA(SO) rating from both CRISIL and CARE Ratings, and are issued in dematerialised form, making them tradable on the secondary market.

The listing was carried out by M. Nagaraju, Secretary, Department of Financial Services, Ministry of Finance, who marked the occasion by ringing the ceremonial bell.

In his remarks at the event, Nagaraju highlighted the crucial role of the housing and housing finance sectors in the broader economic landscape.

He noted that housing has deep linkages with other industries, including infrastructure, and emphasised the urgent need to meet the country’s growing housing demand to support overall economic growth.

He further added that securitisation, through instruments like these PTCs, can serve as a bridge between the housing finance market and the broader debt market.

Stressing the importance of Residential Mortgage-Backed Securities (RMBS), Nagaraju said such instruments could be a game-changer for boosting liquidity and supporting the growth of the housing finance ecosystem in India.

The listing ceremony was attended by several top officials from banks, housing finance companies, and other financial institutions, marking a significant step toward deepening the securitisation market and broadening investment opportunities in the country.

--IANS

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