Don’t miss the latest developments in business and finance.

HDFC to raise up to Rs 6000 crore via NCD issue

Image
Capital Market
Last Updated : Sep 28 2021 | 8:50 AM IST

Housing Development Finance Corporation said that it seeks to raise up to Rs 6,000 crore via issue of secured redeemable non-convertible debentures (NCDs) on a private placement basis.

The base issue size is Rs 3,000 crore, with an option to retain oversubscription up to Rs 3,000 crore. The NCDs have a tenor of three years and would be redeemed on 30 September 2024.

The said NCDs have been rated CRISIL AAA by CRISIL and ICRA AAA by ICRA.

The object of the issue is to augment the long-term resources of the corporation. The proceeds of the issue would be utilized for financing or refinancing the housing finance business of the corporation.

The coupon rate would be payable at a fixed spread of 80 basis points over the benchmark 3 months T-bill rate as published by the Financial Benchmarks India (FBIL). The benchmark would be reset on quarterly basis.

Housing Development Finance Corporation (HDFC) is engaged in financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes, in India.

More From This Section

The housing finance company reported 1.7% fall in standalone net profit to Rs 3,000.67 crore on a 10.4% fall in total income to Rs 11,663.14 crore in Q1 FY22 over Q1 FY21.

Shares of HDFC advanced 0.09% to end at Rs 2841.10 on the BSE on Monday.

The stock has underperformed the market over the past one month, up 4.52% as compared with 7.04% rise in the Sensex during the same period.

Powered by Capital Market - Live News

Also Read

First Published: Sep 28 2021 | 8:38 AM IST

Next Story