India’s largest mortgage lender HDFC Ltd will raise up to ₹5,000 crore by issuing bonds on a private placement basis to shore up its long-term capital needs.
The secured redeemable non-convertible debentures will bear coupon rate of 7.50 per cent per annum, HDFC said in a regulatory filing on Friday.
The size of the bond issue is ₹3,000 crore with an option to retain oversubscription up to ₹2,000 crore.
“The object of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilised for financing/refinancing of the housing finance business requirements of the Corporation,” it said in the filing.
The issue opens on Tuesday (January 7, 2020) and closes the same day.
The mortgage lender said that the bonds have been rated ‘AAA’ both by Crisil and ICRA. Axis Bank is the arranger of the proposed issue.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.