InvestorQ : Why has HDFC raised Rs.7,000 crore from the bond market?
Lavanya Subramanian made post

Why has HDFC raised Rs.7,000 crore from the bond market?

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Anamika Sodhani answered.
3 weeks ago
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Let me clarify that this is still not executed. In fact, HDFC plans to raise Rs.7,000 crore through the issue of redeemable non-convertible debentures or NCDs on a private placement basis to institutional investors and QIBs. The bond issue by HDFC will have a base issue size of Rs.5,000 crore with a green-shoe option to retain an additional Rs.2,000 crore.

The HDFC bond issue will open and also close on May 28, being an institutional private placement. HDFC will offer annual coupon rate of 6% on the bonds and the bonds will have a tenure of 4 years and 363 days. This bond issue will help HDFC to augment long-term resources and will be helpful in financing as well as refinancing home loans.
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