Mortgage lender HDFC Ltd will raise up to Rs 8,500 crore by issuing bonds on a private placement basis to shore up its long-term capital needs. The secured redeemable non-convertible debentures (NCDs) with an issue size of Rs 500 crore and option to retain over-subscription up to Rs 8,500 crore are to be allotted on Thursday on a private placement basis, HDFC said in a regulatory filing.
“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.
HDFC said only those persons who are specifically addressed through a communication are eligible to apply for the debentures. “No other persons can apply,” it added.
The securities, with a tenor of 10 years, bear coupon rate of 9 per cent per annum. The stock of HDFC closed 0.30 per cent up at Rs 1,880.20 apiece on the BSE.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.