Mortgage lender HDFC to raise up to Rs 7,000 crore by issuing bonds
HDFC will offer coupon rate of 6% per annum on the bonds, the issue for which opens on May 28, 2021. The issue will close on the same day
New Delhi: HDFC Ltd on Tuesday said it will raise up to Rs 7,000 crore by issuing bonds on private placement basis. The base issue size for the secured redeemable non-convertible debentures (NCDs) is Rs 5,000 crore with option to retain oversubscription of up to Rs 2,000 crore, HDFC said in a regulatory filing.
The country’s largest mortgage lender will offer coupon rate of 6% per annum on the bonds, the issue for which opens on May 28, 2021. The issue will close on the same day.
“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 the housing finance business requirements of the Corporation,” it said.
The bonds have a tenor of 4 years and 363 days, and the redemption date is set as May 29, 2026. The arranger of the issue is Axis Bank.
HDFC stock closed 0.45 per cent lower at Rs 2,528.90 on BSE.