HDFC To Raise Rs 57,000 Crore Via Bonds
The board of directors also increased the overall borrowing powers of HDFC to Rs 6.5 lakh crore from Rs 6 lakh crore.
The board of the Housing Development Finance Corporation Ltd. approved raising Rs 57,000 crore through bonds.
The mortgage lender will issue unsecured redeemable non-convertible debentures aggregating Rs 57,000 crore, the company said in an exchange filing. The bonds will be issued under a shelf placement memorandum in various tranches on a private placement basis, the filing showed.
Shareholders of the company had approved the fundraising during the 45th annual general meeting on June 30, 2022. In February, HDFC raised Rs 25,000 crore through bonds maturing in 10 years in India's largest privately placed corporate bond issue so far.
The board of directors also increased the overall borrowing powers of HDFC to Rs 6.5 lakh crore from Rs 6 lakh crore, including the outstanding at any point in time. The proposal has been recommended to the shareholders of HDFC for approval.
The decision to extend the borrowing powers was taken "since the outstanding borrowings of the corporation as of date are approximately Rs 5.70 lakh crore and the corporation would need to borrow further for its business purposes till the effective date of the merger," the company said.
HDFC is set to merge with private-sector lender HDFC Bank Ltd. Earlier this month, the NCLT approved the amalgamation, paving the way for a combined entity with a balance sheet of Rs 17.87 lakh crore.
The HDFC stock closed 0.29% lower at Rs 2,556 apiece, against a 0.22% rise in the benchmark Sensex.