HDFC plans to raise nearly Rs 3,000 crore through bonds to augment its long-term capital requirements.
HDFC plans to raise nearly Rs 3,000 crore through bonds to augment its long-term capital requirements. The debt would be issued on a private placement basis, the mortgage lender said in a regulatory filing. The ‘HDFC Series V-006 11th July, 2014’ secured redeemable non-convertible debentures will come with an issue size of Rs 2,000 crore. The issue will also have an option to retain oversubscription up to Rs 3,000 crore, the company also said.
“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 or refinancing the housing finance business requirements of corporation,” HDFC said.
The bonds would come with a coupon rate of 7.99 per cent per annum payable each year. The issue will be opened Thursday and also get closed the same day. The date of allotment of the bonds is July 11, 2019, the mortgage lender said. The shares of HDFC closed the day at Rs 2227.40, down 5.30, OR 0.24 per cent on BSE.
HDFC in Q4FY19 reported a 26.80 per cent year-on-year (YoY) increase in net profit at Rs 2,861.58 crore, beating the street estimates. The lender earned Rs 321.01 crore from sale of investments during the quarter compared with 298.01 crore in the same quarter last year. The housing finance company (HFC) had reported Rs 2,256.68 crore profit in the same quarter of the previous year. The gross non-performing assets (NPAs) for the given quarter had fallen to 1.18 per cent from 1.22 per cent sequentially.
While, the individual gross non performing assets (NPAs) came in at 0.70 per cent, the non individual NPA came at 2.34 per cent, the lender said.