HDFC Ltd on Thursday concluded its largest-ever rupee bond issuance, raising ₹25,000 crore through private placement of 10 year non-convertible debentures (NCDs) carrying a coupon of 7.97 per cent.
The housing finance company, in a statement, said this is also the country’s largest domestic rupee bond issuance.
The coupon rate on the NCDs translates into a spread of 49 basis points (bps) over Wednesday’s closing 10-year government security yield.
Issue oversubscribed
The issue, which had a base size of ₹5,000 crore with an option to retain subscription for additional ₹20,000 crore, was launched on the electronic book platform and received a good response across all investor categories — insurance companies, pension funds, provident funds, banks and mutual funds, per the statement.
HDFC said the issue was oversubscribed and received 92 bids amounting to ₹27,863 crore, of which it retained 55 investor bids totaling to ₹25,000 crore.
V S Rangan, Executive Director, HDFC Ltd, said: “On a sustainable long-term basis, the demand for housing is expected to remain strong, and investor support in long-term financing aids allocation of resources towards on-lending to the sector.”