HDFC plans to issue bonds this month to raise up to Rs11,000 crore

23 Jul , 2022 By : Kanchan Joshi

The private placement bond issuance by mortgage lender Housing Development Finance Corporation (HDFC) is intended to raise up to Rs11,000 crore. In a regulatory filing on Friday, HDFC stated that the secured redeemable non-convertible debentures of the company have a base issue size of Rs4,000 crore and an option to retain oversubscription of up to Rs7,000 crore.

“The private placement bond issuance by mortgage lender Housing Development Finance Corporation (HDFC) is intended to raise up to Rs11,000 crore. In a regulatory filing on Friday, HDFC stated that the secured redeemable non-convertible debentures of the company have a base issue size of Rs4,000 crore and an option to retain an oversubscription of up to Rs7,000 crore," HDFC Ltd has said in an exchange filing.

"The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the corporation," it added. The interest rate on the secured redeemable non-convertible debentures (NCDs) will be 8%, with yearly coupon payments. Up to the redemption date, the coupon payment dates will always be on July 27 every year. The 10-year term and 27th July 2032 redemption date for the secured redeemable non-convertible debentures (NCDs) are set. The redemption shall be Rs10,000. HDFC has said in a regulatory filing that the issue opens on 26th July and will be closed on the same day.

"In case of default in payment of coupon and/ or redemption of the principal amount of the Debentures on the respective due dates, additional interest of at least 2% per annum over and above the coupon rate shall be payable by the company for the defaulting period until the defaulted amount together with the delay penalty is paid," HDFC said in a regulatory filing.

Housing Development Finance Corp Ltd (HDFC) shares ended today's trading session on the NSE at Rs2,295.95 per share, up 2.39 per cent from its previous close of Rs2242.40. In the last 1 year, the scrip has fallen 7.51% and on a YTD basis, the stock has fallen 12.91% so far in 2022.