Housing Development Finance Corporation (HDFC Limited) announced on 7 October that it would extend up to Rs. 12,000 crore by issuing bonds on private placement basis next week.
Base issue size is 1,000 crore with the option to retain the subscription up to Rs. 11,000 crore, it said in a stock regulatory filing.
As per the filing, the secured redeemable non-convertible debentures (NCDs) will carry a coupon rate of 8.07 per cent per annum for a tenure of 10 years.
Read also: HDFC special fixed deposit scheme for senior citizens extended till March 2023
“The objective of this issue is to augment the long-term resources of the Corporation,” he said, “The proceeds of the present issue will be used for financing/refinancing the housing finance business requirements of the Corporation.”
The Secured Redeemable Non-Convertible Debentures issue will open on October 11 and close on the same day. The issue is part of the Company’s Shelf Placement Memorandum “AA-Series”, which 75,000 crore which was approved by the board of the mortgage lender in November 2021.
Earlier, private sector giant HDFC Bank has extended its special fixed deposit scheme for senior citizens. Senior Citizen Care FD is a special fixed deposit program offered by HDFC Bank with effect from May 18, 2020, with the advantage of higher interest rate for senior citizens. However, due to the Covid-19 pandemic and the low interest rate regime, the scheme was repeatedly extended and was due to expire on September 30, 2022.
With PTI input.
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