LIC Housing Fin, HDB Finance reduce fundraise sizes on hardening yields

LIC Housing raises 1,150 cr against Rs 3,000 cr planned

After State Bank of India (SBI) slashed fundraise through tier I bonds on hardening yields, LIC Housing Finance raised Rs 1,150 crore against an indicated up to Rs 3,000 crore via 10-year bonds. The base issue was Rs 1,000 crore and greenshoe option of Rs 2,000 crore. The mortgage lender fixed a coupon of 7.95 per cent.

HDB Financial Services, a unit of HDFC Bank, placed paper (having about 38-month tenor) at a coupon of 8.07 per cent to raise only Rs 244 crore against the indicated amount up to Rs 1,240 crore.

According to bond market dealers, issuers are