HDFC Raises Rs 25,000 Cr In Largest-ever Local Bond Issue: Bankers

Housing Development Finance Corporation (HDFC) on Thursday raised Rs 25,000 crore in India’s largest privately placed corporate bond issue, news agency Reuters reported citing merchant bankers.

HDFC’s Executive Director VS Rangan told Reuters that participation was from across investor categories with Life Insurance Corporation being one of the largest ones.

Others who participated included other insurance companies, provident funds, banks, mutual funds and pension trusts.

HDFC is soon to be merged with private lender HDFC Bank.

HDFC sold 10-year bonds at a coupon of 7.97 per cent.

The issue received 92 bids worth Rs 27,863 crore, of which the company retained 55 bids worth Rs 25,000 crore, HDFC said in a regulatory filing.

The proceeds would be utilised for financing/refinancing its housing finance business requirements, the housing financer added.

Merchant bankers noted that most of the funds would help HDFC meet its capital requirements after the merger. 

A part of it may also be used to buy government bonds to meet its statutory liquidity ratio needs post-merger, the bankers added.

HDFC has now raised a total of Rs 78,414 crore through bond issuance in this financial year, the highest by any company.