Housing Development Finance Corporation (HDFC) August 13 said it has raised Rs 5,000 crore through a private placement of secured non-convertible debentures (NCDs). The bonds mature in 10 years and carry a coupon rate of 7.91 percent.
“The object of the issue is to augment the long-term resources of the corporation,” HDFC said in a statement to exchanges. “The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the corporation,” it added.
The base size of the issue was Rs 500 crore, with an option of retaining oversubscription of up to Rs 4,500 crore. The minimum subscription size was set at 10 debentures of Rs 10 lakh each.
The bonds were rated “CRISIL AAA” by CRISIL and “ICRA AAA” by ICRA rating agency. They will be listed on BSE and National Stock Exchange, according to the term sheet.
This is the third NCD issuance by the mortgage lender this financial year. Last month, HDFC raised Rs 5,000 crore through sale of 3-year NCDs at the coupon rate of 7.87 percent and Rs 5,000 crore through sale of 5-year NCDs at the coupon rate of 7.99 percent.
Last financial year, HDFC raised over Rs 30,000 crore via a private placement of NCDs.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!