The Housing Development Finance Corporation (HDFC) has reportedly raised Rs 100 crore at an all time low yield of 10.78 per cent for five years from the private placement market.
At the same time, funds raised last week were at a spread of 50 basis points over the gilt yields prevailing in the secondary last week. "The pricing is just 50 basis points over the then prevailing gilt yields for comparable maturities," said Milind Barwe, HDFC's chief of treasury. Following this placement, HDFC is unlikely to tap the debt mart further this fiscal, he added. HDFC raised Rs 100 crore in two tranches of Rs 50 crore each. While one part was a 5-year paper at a coupon of 10.78 per cent, the other part was a 3-year paper offering a coupon of 10.58 per cent.
Indian Oil had raised Rs 500 crore from the private placement market last week at 10.85 per cent for seven years. However, the bond also offered a put and call option at the end of five years, effectively making 10.85 per cent rate applicable for 5 years. The placement made by HDFC did not involve any arrangers since it was private deals which took place bilaterally between HDFC and the investors.
With this, HDFC has completed Rs 750 crore worth of borrowings so far this fiscal by way of bond issues. "With this placement we have almost completed our borrowing programme for the financial year and are unlikely to go in for any more issues this year," said Barwe.
