Today, the first Mortgage-backed PTC structured by RMBS Development Company Limited was listed on the National Stock Exchange. Listing of the Security was done by Shri M. Nagaraju, IAS, Secretary, Department of Financial Services, Ministry of Finance, Government of India by ringing the bell. The listing ceremony was attended by several Heads of Bank, Housing Finance Companies and other financial institutions.

The PTCs are backed by pool of housing loans originated by LIC Housing Finance Limited. The total pool size is Rs. 1,112.05 crores and the tranche is Rs. 1,000 crores (1,00,000 PTCs of Face value of Rs. 1,00,000/-). The issue was fully subscribed.

This is the first issue of a PTC where the coupon was discovered on the “Electronic Book Provider (EBP)” platform of the National Stock Exchange. The final maturity of the PTC issued will be nearly twenty years and the coupon is 7.26% per annum. The rating of the Instrument is AAA (SO) by CRISIL and CARE Ratings. The PTCs are issued in demat form and are transferable. As the PTC is listed on a stock exchange, they can be traded in the secondary market.

The listing ceremony started with a welcome address by Shri Sanjay Shukla, Managing Director, National Housing Bank. NHB is the promoter of RMBS Development Company Limited (RDCL). Speaking on the occasion, Mr. Shukla has stated the role played by NHB in the development and promotion of housing finance in the country. He said that NHB has three strategic roles as Supervisor of HFCs, extending refinance and working for promotion and development of housing/ housing finance sector in the country.

Speaking on the occasion, the Secretary stressed the importance of housing sector and the housing finance sector for the growth of our economy. He stated that housing finance has many forward and backward linkages with many other industries including the infrastructure. He stated that the ratio of mortgages to GDP has doubled in the last decade to over 11% by FY 2024. With a country of such vast population, housing needs have to be addressed at the earliest to achieve overall economic development.

He stated that Securitization can act an integrating factor for housing finance market and the debt market. Reiterating the importance of RMBS, he stated that it could act as a catalyst for the growth of the housing finance sector.

The secretary has enumerated the objective of RMBS and the importance of it to investors, originators and to the final retail borrowers. He extended his best wishes to RDCL and NHB for their endeavor and congratulated all other stakeholders for their contribution.

He concluded by hoping that more such issuances will take place in the times to come.