HDFC plans Rs 200-cr bond float

Kolkata, Dec 9 | Updated: Dec 10 2004, 05:30am hrs
Housing Development Finance Corp (HDFC) plans to raise Rs 200 crore via a bond issue next Monday. The annual coupon for the five-year fixed interest rate bond is 6.95%, which is a fine rate in this market.

The rate would be a benchmark for the corporate bonds with five-year maturity, a senior investor banker said. A five-year government security is now yielding just a shade below 6.5%.

The issue has already been presold fully, investment banking sources told FE. The issue is AAA rated by Crisil and Icra. AK Capital Services, ICICI Bank and UTI Bank are the arrangers to the issue.

HDFC enters the domestic market regularly to fund its business. Till date this fiscal, the company had raised funds some where around Rs 3,800 crore. The current mobilisation plan is part of its regular borrowing programme, said HDFCs general manager (treasury) Conrad Dsouza.

In the first six months of the current fiscal, HDFC disbursed Rs 6,983.48 crore, against Rs 5,470.95 crore during the corresponding period in the preceding fiscal.

The HDFC issue is hitting the market at a time when liquidity is improving on the back of dollar inflows. During the week to November 26, Indias foreign exchange reserves grew by a record $1.82 billion to $126.923 billion following heavy investment flows and revaluation of currencies.