Whopping Rs 5000 cr! What HDFC is doing to augment long-term capital needs
Country's largest mortgage lender HDFC Ltd has said it will raise up to Rs 5,000 crore by issuing bonds on a private placement basis to augment its long-term capital needs.
Country's largest mortgage lender HDFC Ltd has said it will raise up to Rs 5,000 crore by issuing bonds on a private placement basis to augment its long-term capital needs. The secured redeemable non-convertible debentures will bear a coupon rate of 7.50 per cent per annum, HDFC said in a regulatory filing.
The issue size of the bond issue is Rs 3,000 crore with an option to retain oversubscription up to Rs 2,000 crore.
"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 of the housing finance business requirements of the Corporation," HDFC said in the filing.
The issue opens and closes on Tuesday (January 7).
Also, Housing Development Finance Corporation (HDFC) will now offer cheaper lending rates on home loans from January 6, as it reduced the retail prime lending rate by 5 basis points.
"HDFC reduce its retail prime lending rate on housing loans, on which its 'Adjustable Home Loan Rate' (AHLR) are benchmarked, by 5 basis points with effect from January 6, 2020," the company said in a regulatory filing.
Consequently, the effective rates for home loan for women borrowers up to Rs 30 lakh would be 8.05 per cent, from Rs 30-75 lakh at 8.30 per cent and above Rs 75 lakh, 8.40 per cent. For male borrowers, the rates would be 5 bps more.
The change will benefit all existing HDFC customers, the company said.
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10:14 AM IST