Even as tight liquidity conditions continue in the system, LIC Housing Finance today said it has raised Rs 750-crore through a bond issue at a competitive rate.
The amount raised is over three times its intended issue size and at a rate of 9.4 per cent, the company said in a release, adding that the bonds will have a tenure of two years.
The rate is within the prevailing one-year bank certificate of deposits (CD) or commercial paper (CP) rates of 9.2-9.5 per cent, the Mumbai-headquartered company said.
The original issue size was Rs 200 crore and also had a green-shoe option, allowing it to retain over subscriptions, it said.
"The bond issue got a good response from institutional investors from Indian and foreign banks, mutual funds and insurance companies," the company said.
The company was in involved in a controversy recently because of the arrest of its Chief Executive in a bribe-for-loans case involving some middlemen and borrowings by some realty companies. R R Nair, the tainted CEO has since been replaced by V K Sharma.