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Non-Banking firm Altico Capital plans to raise Rs 2,000 crore
Non-banking financial firm Altico Capital India on Thursday said its board has approved raising funds worth Rs 2,000 crore through various routes including commercial paper and non-convertible debentures (NCDs).
Altico Capital has been recently assigned an 'AA-' long term rating with a stable outlook and an 'A1+' short term rating by Fitch, the company said.
Altico is engaged in real estate asset-backed lending in Mumbai, Delhi, Chennai, Bangalore and Pune. Hong Kong-based Clearwater has invested more than $4 billion in Asia, and manages about $1.5 billion worth of assets in six funds.
"The rating agency sighted that Altico's rating reflects its robust capitalisation, conservative leverage philosophy and prudent liquidity policy as a rationale for the ratings assigned to Altico," it said in a statement.
"In view of the same, the Altico Capital Board approved raising of funds up to Rs 2,000 crore through a mix of instruments and funding sources including bank lines, commercial paper and NCDs," the statement added.
Further, Altico noted that its current focus is on senior secured lending to residential projects in the real estate sector across Tier-1 cities in India, it said. The firm expects to deploy $400 million (more than Rs 2,600 crore) every year for the near term, given the overall requirements in the mid income and affordable housing segment.
"Outside of the core strategy of financing mid-income and affordable housing segment, we will look to deploy an incremental $150 million (over Rs 1,000 crore) steadily over the next 12-18 months in the commercial real estate and infrastructure sectors should the right opportunities present themselves," Altico Capital CEO Sanjay Grewal said.
"Altico Capital is well positioned to capitalise on direct lending opportunities in India, with a focus on making senior secured loans to the real estate sector whilst retaining the flexibility to invest across multiple strategies," he added.
"Altico Capital is a foreign owned and controlled NBFCs by net worth capitalised at Rs 2,000 crore. The firm has invested over $40 billion since inception and is currently managing investments worldwide.
"Meanwhile, the Mumbai-based company also said it has appointed Dhruv Jain as its Chief Financial Officer. Jain's prior assignments includes working as Group CFO at IIFL Holdings (erstwhile India Infoline) and heading treasury and risk functions at Citi Financial Consumer Finance India (erstwhile NBFC arm of Citigroup in India).