HDFC raises ₹25,000 crore in India’s largest rupee bond issue
1 min read . Updated: 16 Feb 2023, 09:47 PM IST
PremiumThe fundraise comes in the run up to its merger with banking arm HDFC Bank. It has raised ₹25,000 crore in non-convertible debentures carrying a coupon of 7.97%.
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 fundraise comes in the run up to its merger with banking arm HDFC Bank. It has raised ₹25,000 crore in non-convertible debentures carrying a coupon of 7.97%. This translates to a spread of 49 basis points over Wednesday’s closing of the 10-year government security yield.
“The issue received a phenomenal response across all investor categories," it said in a statement. Earlier on Tuesday, HDFC launched the issue to raise ₹5,000 crore, with an option to retain oversubscription of another ₹20,000 crore.
According to HDFC, as soon as the bids opened, there was wide participation from investors across insurance companies, pension funds, provident funds, banks and mutual funds. The issue was oversubscribed and received 92 bids of ₹27,863 crore, of which the company retained 55 investor bids of ₹25,000 crore.
Demand in the housing sector continues to be strong, said V.S. Rangan, executive director, HDFC Ltd. “On a sustainable long-term basis, the demand for housing is expected to remain strong, and investor support in long term financing aids allocation of resources towards on-lending to the sector," Rangan said.