The Ministry of Finance has marked a major milestone in India’s financial market with the listing of the country’s first mortgage-backed Pass-Through Certificates (PTCs) on the National Stock Exchange (NSE).
The PTCs were structured by RMBS Development Company and are backed by a pool of housing loans from LIC Housing Finance.
M. Nagaraju, Secretary of the Department of Financial Services, officiated the listing by ringing the ceremonial bell at NSE. The event was attended by senior officials from banks, housing finance companies, and other financial institutions.
The issue, worth Rs. 1,000 crore and comprising 1,00,000 PTCs with a face value of Rs. 1,00,000 each, was fully subscribed. This is the first time in India that a PTC’s interest rate was determined through the Electronic Book Provider (EBP) platform of NSE. The PTCs carry a coupon rate of 7.26 per cent per annum with a maturity of nearly twenty years. They have been rated AAA(SO) by CRISIL and CARE Ratings and are issued in demat form, making them tradable on the secondary market.
Speaking at the ceremony, Nagaraju highlighted the crucial role of the housing and housing finance sectors in supporting India’s economic development. He noted that housing has strong linkages with multiple industries and that securitisation tools like RMBS can help channel more funds into the sector.
He added that this initiative would strengthen the connection between the housing finance market and the broader debt market, supporting the growth of affordable housing across the country.
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