The Housing Development Finance Corporation (HDFC Ltd) on 7 October announced that it will raise up to ₹12,000 crore by issuing bonds on a private placement basis next week.
The base issue size is ₹1,000 crore with an option to retain over subscription of up to ₹11,000 crore, it said in a stock regulatory filing.
According to the filing, the secured redeemable Non-Convertible Debentures (NCDs) will carry a coupon rate of 8.07 per cent per annum for a tenor of 10 years.
ALSO READ: HDFC special fixed deposit scheme for senior citizens extended till March 2023
“The object of the issue is to augment the long-term resources of the corporation,” it said, adding, “”The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the corporation.”
The secured redeemable Non-Convertible Debentures issue will open on October 11 and close the same day. The issue is part of company’s Shelf Placement Memorandum “AA-series” aggregating to ₹75,000 crore that was approved by the mortgage lender’s board in November 2021.
Earlier, the private sector giant HDFC Bank has extended its special fixed deposit scheme for senior citizens. Senior Citizen Care FD is a special-fixed deposit programme offered by HDFC Bank since May 18, 2020, with a higher interest rate benefit for senior citizens. However, due to the Covid-19 pandemic and the low-interest rate regime, the scheme was repeatedly extended and was set to expire on September 30, 2022.
With PTI inputs.
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