A New Era for Housing Finance: Maiden Mortgage-Backed Securities Hit Market

The National Housing Bank (NHB) launched India's first residential mortgage-backed securities, expecting to raise over Rs 10,000 crore this fiscal. RDCL listed the first set of Rs 1,000 crore securities on the NSE. NHB aims for multiple future transactions to provide investors with stable opportunities.

Devdiscourse News Desk | Mumbai | Updated: 05-05-2025 19:38 IST | Created: 05-05-2025 19:38 IST

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India witnessed a significant milestone in housing finance as its first residential mortgage-backed securities were launched on Monday. This development, spearheaded by the National Housing Bank (NHB), is expected to fuel over Rs 10,000 crore in capital-raising activities for the current fiscal year.

The RMBS Development Company (RDCL), promoted by the NHB, successfully listed securities worth Rs 1,000 crore on the National Stock Exchange. These securities mature in 20 years and offer a 7.26 per cent coupon, payable monthly. NHB's Managing Director, Sanjay Shukla, anticipates up to 10 more such transactions.

The initiative aims to facilitate access to funding for home financiers by securitizing future loan receivables. It's poised to attract investments from pension and insurance funds, marking a transformative shift in the housing finance sector. NHB plans further investor engagement to structure additional securities for listing.

(With inputs from agencies.)