HDFC To Launch Rs 5,000-Crore Bond Issue On January 7
Mortgage lender Housing Development Finance Corporation Ltd. will raise up to Rs 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 percent per annum, HDFC said in a regulatory filing on Friday. The size of the bond issue is Rs 3,000 crore with an option to retain oversubscription up to Rs 2,000 crore. The issue opens on Tuesday, Jan. 7, 2020, and closes 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 of the housing finance business requirements of the Corporation," it said in the filing.
On Friday, HDFC shares fell 0.58 percent to Rs 2,452.05 apiece on the NSE while the benchmark Nifty 50 shed 0.45 percent to end the day at 12,226.65 points.