Mortgage lender HDFC will raise Rs 2,000 crore by issuing bonds through a private placement offer that opens on Friday to augment its long-term resources.
Mortgage lender HDFC will raise Rs 2,000 crore by issuing bonds through a private placement offer that opens on Friday to augment its long-term resources. “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,” HDFC said in a regulatory filing. The country’s largest mortgage lender will issue secured redeemable non-convertible debentures (NCDs) on June 16, which closes on the same day. The bonds will carry a tenor of three years three months, and will pay an interest of 1.50 per cent per annum from the date of allotment until September 15, 2018, thereafter 11.73 per cent per annum from September 2018 up to redemption date. The Housing Development Finance Corporation (HDFC) said only those persons who are specifically addressed through a communication are eligible to apply for the debentures and no other person can apply. Shares of HDFC closed 0.53 per cent down at Rs 1,662.00 on BSE today.