Mumbai– In a significant step 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. The historic issuance, structured by RMBS Development Company Limited, is backed by a pool of housing loans originated by LIC Housing Finance Limited.
Valued at Rs 1,000 crore, the offering comprised 1,00,000 PTCs, each with a face value of Rs 1,00,000, and was fully subscribed—underscoring strong investor confidence and demand for long-term securitised debt instruments.
This is the first-ever issuance in India where the coupon rate was discovered via the Electronic Book Provider (EBP) platform of the NSE. The final coupon rate was set at 7.26% per annum, and the securities have a tenure of nearly 20 years.
Rated AAA(SO) by both CRISIL and CARE Ratings, the PTCs are issued in dematerialised form and are fully tradable on the secondary market, creating new avenues for investor participation and liquidity.
The landmark listing was officiated by M. Nagaraju, Secretary of the Department of Financial Services, Ministry of Finance, who rang the ceremonial bell at the NSE.
In his address, Nagaraju underscored the strategic importance of the housing and housing finance sectors in India’s economic development. “Housing has deep linkages with other industries, including infrastructure,” he noted. “Meeting India’s growing housing demand is essential for sustained economic growth.”
He further emphasized that securitisation through instruments like PTCs offers a vital bridge between housing finance institutions and the broader debt capital market. “Residential Mortgage-Backed Securities (RMBS) have the potential to be a game-changer by boosting liquidity and accelerating the growth of India’s housing finance ecosystem,” he added.
The listing ceremony saw participation from senior representatives of banks, housing finance companies, and institutional investors, marking a new chapter in India’s capital market evolution. It also signals growing maturity in India’s securitisation market, with the potential to deepen financial inclusion and broaden investment products. (Source: IANS)
