Mumbai : Mortgage lender Housing Development Finance Corp Ltd (HDFC) on Thursday said it has raised 25,000 crore in 10-year bonds, dubbing it “India’s largest rupee bond issuance”.
The fundraising has been done in the wake of its merger with the banking arm HDFC Bank. it’s increased 25,000 crore in non-convertible debentures bearing a coupon of 7.97%. This translates to a spread of 49 basis points on Wednesday’s closing 10-year government security yield.
“The issue received a stupendous response across all investor categories,” it said in a statement. 5,000 crore, with an option to retain the oversubscription of the second 20,000 crores.
According to HDFC, as soon as the bids opened, there was widespread participation from investors across insurance companies, pension funds, provident funds, banks and mutual funds. The issue was oversubscribed and 92 bids were received 27,863 crore, of which the company retained 55 investor bids 25,000 crores.
VS Rangan, Executive Director, HDFC Ltd. said, “Demand in the housing sector continues to be strong. On a long-term basis, housing demand is expected to remain strong, and the support of investors in long-term financing aid in allocation of resources for lending to the sector. towards,” Rangan said.
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