The nation’s largest mortgage lender Housing Development Finance Corporation (HDFC) will elevate up to Rs 6,000 crore by issuing bonds on a personal placement foundation to increase its long run resources.
The bonds within the nature of secured redeemable non-convertible debentures (NCDs) have a base issue measurement of Rs 3,000 crore with the choice to retain oversubscription up to Rs 3,000 crore, HDFC mentioned in a regulatory submitting on Monday.
“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 mentioned.
The three-year tenor bonds rated ‘AAA’ by Crisil and Icra might be up for redemption on September 30, 2024.
The bids for subscription will open on September 29, 2021, and shut on the identical day.
HDFC mentioned the coupon rate on the bonds can be payable at a set unfold of 80 foundation factors (0.80 per cent) over the benchmark that might be reset on a quarterly foundation.
The benchmark might be a three-month T-bill (treasury invoice) as printed by FBIL and sourced from Bloomberg, it added. If Bloomberg knowledge isn’t out there, the straightforward common of FBIL 3-months T-bills closing rate, as printed by Financial Benchmarks India Pvt Ltd (FBIL) could also be recognised with sure parameters.
The first such quarterly setting of the coupon rate for September 30, 2021, can be 4.13 per cent every year, HDFC mentioned. Shares of HDFC closed flat at Rs 2841.10 apiece on BSE.
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