Housing Development Finance Corporation (HDFC) is planning to raise up to ₹8,000 crore via the issue of 5-year bonds carrying a coupon of 7.7 per cent, the company informed the exchanges on Monday.
The issue has a base size of ₹3,000 crore and the option to retain oversubscription of up to ₹5,000 crore.
The senior unsecured non-convertible debentures (NCDs) will be issued on a private placement basis, and are set to mature on May 16, 2028. The bonds are rated ‘AAA’ by CRISIL and ICRA.
“The objective of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilized for financing/ refinancing the housing finance business requirements,” HDFC said.
Minimum subscription to the issue has been set at 100 NCDs of ₹1 lakh each. Axis Bank is the arranger to the issue.
The board of HDFC, had in March, approved raising up to ₹57,000 crore via bonds, in multiple tranches, for business purposes till the effective date of the merger.
HDFC has been raising long-term funds to help HDFC Bank comply with regulatory guidelines on maintaining CRR (Cash Reserve Ratio), SLR (Statutory Liquidity Ratio) and LCR (Liquidity Coverage Ratio), post the merger.
The RBI has asked the private sector lenders to meet the regulatory ratios from day one of the merger, expected to be completed by July.