HDFC plans 10-year bond issue to raise Rs 10,000 cr

Mumbai: Housing Development Finance Corp is likely to raise at least ₹10,000 crore through 10-year bonds in the coming days while state-owned REC may raise up to ₹6,000 crore through two bond sales on Friday, people aware of the developments said.

HDFC is likely to await the Reserve Bank of India's monetary policy statement before deliberating on the coupon rate for the bonds, people aware of the matter said.

Both the bond issues of REC have base sizes of ₹500 crore and additional subscription options of ₹2,500 crore each, sources said. One of the bonds is set to mature on April 30, 2026, and the other on June 30, 2028, they said.

The state-owned power sector financier's bonds are rated AAA by Crisil, India Ratings and ICRA.

In April, REC tapped international debt markets, selling $750 million of green bonds maturing in five years. The coupon for the dollar-denominated debt was set at 5.659%.

Access to debt capital markets has become cheaper since April as an unexpected pause in policy tightening by the RBI resulted in a sharp decline in sovereign bond yields.

Government bonds are the benchmarks used to determine the pricing of corporate credit.