HDFC plans to raise Ra 5,000 crore through issue of non convertible debentures
HDFC Limited, one of India’s largest housing finance companies, on Wednesday 3rd March announced that it will raise funds up to Rs 5,000 crore by issuing non-convertible debentures (NCDs) on a private placement basis.
The issue will open on March 5, 2021, and close the same day, HDFC stated in a regulatory filing.
The base size of the issue of secured redeemable NCDs is Rs 2,000 crore. This includes an option to retain oversubscription up to Rs 3,000 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 the housing finance business requirements of the Corporation,” it said.
The coupon rate on the bonds, set to mature on 8th Match, 2023, fixed at 5.30% per annum. The arranger of this issue is ICICI Bank.
HDFC stock closed today at Rs 879.80, up 8.62% on BSE.