The Housing Development Finance Corporation (HDFC) has declared its intention to issue 5-year bonds in order to raise up to 8,000 crores. On Monday, the business informed the exchanges of this information.
The bond issuance has a base size of 3,000 crores and an option to retain up to 5,000 crores of oversubscription.
On May 16, 2028, these senior unsecured non-convertible debentures (NCDs) will mature and be privately put. These bonds have received a ‘AAA’ rating from CRISIL and ICRA, respectively.
According to HDFC, the goal of this issue is to improve the company’s long-term resources. The proceeds from this offering will be utilised to fund and refinance the needs of the home finance industry.
The minimum subscription amount for this issuance is 100 NCDs, each worth one lakh rupees. The arranger for this issue has been named as Axis Bank.
The HDFC board authorised financing up to 57,000 crores through various bond tranches in March for use in the company’s operations up until the merger’s effective date.
To help HDFC Bank adhere to regulatory requirements for CRR (Cash Reserve Ratio), SLR (Statutory Liquidity Ratio), and LCR (Liquidity Coverage Ratio) after the merger, HDFC has been raising long-term funds.
Private sector lenders must adhere to these statutory ratios as of the day of the merger, which is projected to be completed by the end of July, according to a directive from the Reserve Bank of India (RBI).
About HDFC:
Housing Development Finance Corporation Limited (HDFC), headquartered in Mumbai, is a prominent private development finance institution in India. With a strong foothold in the housing finance sector, it serves as a leading provider of housing finance solutions. Additionally, the corporation extends its operations to various other domains, including banking, life and general insurance, asset management, venture capital, realty, education, deposits, and education loans.
For more of the Latest News, Click Here
