HDFC Raises Rs 25,000 Crore Via India's Largest Private Bond Sale
The bond maturing on Feb. 17, 2033, offers a coupon rate of 7.97% per annum.
Housing Development Finance Corporation Ltd. raised Rs 25,000 crore by selling bonds maturing in 10 years. This was India's largest privately placed corporate bond issue.
The country's largest housing financier is paying a coupon rate of 7.97% per annum on the bond maturing on Feb. 17, 2033, according to an exchange filing from the lender. The issuance saw wide participation from investors across insurance companies, pension funds, provident funds, banks and mutual funds, according to a press statement from HDFC.
"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,” said VS Rangan, executive director at HDFC Ltd, in a statement.
The lender received a total of 92 bids, totaling Rs 27,863 crore, for the non-convertible debentures. HDFC accepted 55 bids for the NCDs, aggregating to Rs 25,000 crore. The NCDs will be allotted to investors tomorrow, the notice said.
HDFC, will soon be merged with the biggest private bank in the country, HDFC Bank Ltd.
Shares of the company ended 0.18% lower at Rs 2,699 apiece, while the benchmark Nifty 50 gained 0.11%.