Mortgage lender HDFC Ltd on Friday announced that it is going to raise up to Rs 5,000 crore by issuing bonds on private placement basis.
In a regulatory filing, the company said, “the object of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the Corporation,” it said in the filing.
It added that the issue size is of Rs 2,000 crore, with an option to retain oversubscription of Rs 3,000 crore. The secured redeemable non-convertible debentures will be open for bidding on September 8, 2020, and will close on the same day.
The lender said the eligible investors would be “only the persons who are specifically addressed through communication are eligible to apply for the Debentures. No other person can apply.”
HDFC has set the coupon rate at 4.95 per cent and redemption date of the bonds is fixed at September 9, 2022.
Company’s stock closed 2.19 per cent down at Rs 1,770 apiece on BSE.