Sammaan Capital Goes Global: Foreign Currency Bonds Set Stage for New Growth

Sammaan Capital Limited, one of India’s largest housing finance companies, has officially approved the issuance of foreign currency-denominated bonds, marking a pivotal moment in its international expansion strategy. The move, announced on August 21, 2025, signals the company’s intent to tap global capital markets and reinforce its commitment to socially impactful lending.

This strategic issuance comes at a time when Indian financial institutions are increasingly exploring offshore funding to diversify their capital base, reduce borrowing costs, and align with global ESG mandates. Sammaan’s decision to issue fixed-rate, senior secured social notes in US dollars is expected to attract strong interest from international investors seeking exposure to India’s resilient housing finance sector.

Key highlights of the bond issuance:

1. The Securities Issuance and Investment Committee of Sammaan Capital approved the issuance of foreign currency bonds on August 21, 2025  
2. The bonds will be issued as fixed-rate, senior secured social notes denominated in US dollars  
3. A preliminary offering circular has been finalized and shared with potential investors  
4. The coupon payments will be made semi-annually  
5. Each note will be issued in denominations of 200,000 US dollars and, in excess thereof, in multiples of 1,000 US dollars  

Strategic objectives behind the move:

Sammaan Capital’s foreign bond issuance is not merely a financial maneuver—it’s a strategic leap toward global relevance. The company aims to:

- Access lower-cost capital compared to domestic borrowing rates  
- Broaden its investor base by engaging institutional players across Europe, Asia, and the Middle East  
- Fund affordable housing initiatives under its sustainable financing framework  
- Align with RBI’s External Commercial Borrowing (ECB) guidelines for onward lending and social impact  

Collateral and covenant structure:

To ensure investor confidence and regulatory compliance, Sammaan Capital has structured the bonds with robust collateral and maintenance covenants. These include:

- Collateralization of present and future financial and non-financial assets, including investments and loan receivables  
- Net non-performing assets (NPAs) maintained below 5 percent of gross advances  
- A minimum security coverage ratio of 1.1  
- At least 85 percent of total loans under the company’s loan book to be secured loans  

Market timing and investor sentiment:

The timing of this issuance aligns with growing global interest in emerging market debt, especially instruments that carry ESG credentials. Sammaan’s social bond designation is expected to resonate with investors focused on sustainable finance and inclusive growth.

The company’s current S&P rating stands at B+/stable, and the issue rating will be determined in due course. Analysts expect the offering to be well-received, given Sammaan’s strong track record in housing finance and its recent rebranding from Indiabulls Housing Finance Limited.

Corporate evolution and brand repositioning:

Sammaan Capital underwent a major identity transformation in July 2024, following approvals from the Reserve Bank of India and the Ministry of Corporate Affairs. The new name reflects a deeper commitment to dignity-driven financial inclusion and social impact lending.

This bond issuance is the first major capital market initiative under the Sammaan brand, and it sets the tone for a more globally integrated and socially conscious business model.

Financial performance snapshot:

In Q3 FY25, Sammaan Capital reported a consolidated net profit of Rs 302 crore, matching its performance from the same quarter last year. However, total income declined by 8.73 percent year-on-year to Rs 20.19 crore, reflecting a cautious lending environment and strategic portfolio adjustments.

Conclusion:

With this foreign currency bond issuance, Sammaan Capital is not just raising funds—it is raising its global profile. The move underscores the company’s ambition to become a leading player in sustainable housing finance, both in India and abroad. As the offering gains traction, stakeholders will be watching closely to assess its impact on Sammaan’s growth trajectory and the broader financial landscape.

Sources: Business Standard, Capital Market News, Rediff MoneyWiz