According to a regulatory filing by HDFC, the secured redeemable non-convertible debentures (NCDs) will have an interest rate of 7.77%, be payable annually, and have a term of 4 years, 11 months, and 10 days.
Mortgage industry leader HDFC Ltd. announced on Wednesday that it would issue bonds on a private placement basis on Friday to earn up to Rs 5,000 crore.
According to a regulatory filing by HDFC, the secured redeemable non-convertible debentures (NCDs) will have an interest rate of 7.77%, be payable annually, and have a term of 4 years, 11 months, and 10 days.
The offering size is Rs 2,500 crore, with a potential Rs 2,500 crore oversubscription.
The publication’s opening and closing dates are both July 15, 2022.
According to analysts at ICICI Securities, “containment of slippages, better recoveries, and improved collections will support HDFC Bank’s asset quality trends. However, even as treasury loss will weigh on earnings, lower provisioning relative to Q1FY22 will lead to robust net profit growth”
“The object of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the Corporation,” HDFC said.
The proposed bond issue’s arranger is Axis Bank.
HDFC shares decreased 2.65% from the previous close to conclude at Rs 2,167.40 a share on the BSE.
