CanFin plans Rs 50-crore private placement

Bangalore: CanFin Homes, the housing finance subsidiary of Canara Bank, is tapping the private placement market with a Rs 50-crore debenture issue.

A bank release here said that the issue will be priced at 9.30 per cent, payable half-yearly, and will have a tenor of seven years. But the issue will have a five-year call or put option, which means a spread of at least 2.5 per cent over the equivalent government security.

The funds will be used to refinance some of the high-cost debt of the company. This will lead to a reduction in the weighted average cost of working funds for CanFin.