👍HDFC likely to sell Rs 25,000 cr of 10-year bonds by this week, say sources | Business Standard News

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This will be one the largest ever debt sales by the firm; proceeds may be used to meet its financing or refinancing needs

Housing Development Finance Corp has launched a bond sale worth a total of Rs 25,000 crore, marking the largest ever debt issuance plan by an Indian company.

“We launched a Rs 5000 crore NCD issuance with a green shoe option of up to Rs 20,000 crores through the Electronic bidding platform. This amount is being raised to meet our Business requirements” V S Rangan, Executive Director, HDFC Ltd told Business Standard.

If HDFC’s entire planned issuance were to go through, it would mark the largest ever bond sale by an Indian company, Bloomberg data showed.

Debt capital market officials said that the HDFC’s bonds were of 10-year maturity and the expectation for the coupon – or the rate of interest paid to investors – was around 7.97 per cent,” a source said.

The 10-year benchmark government bond settled at 7.37 per cent yield on Tuesday.

HDFC’s planned fund-raising this week comes ahead of the company’s merger with HDFC Bank. In April 2022, HDFC Bank said it would take over HDFC in a deal valued at $40 billion.

The merger was initially to be completed by the second or third quarter of the next financial year. Subsequently, top officials of the bank said that the merger could be completed before schedule, with some analysts expecting the process to be implemented by the end of April-June.

In December 2022, HDFC Bank had raised Rs 15,000 crore through the issuance of tier-2 bonds, marking the largest sale by any bank in the current financial year.

Last month, Reuters had reported that after a gap of a couple of months, the housing finance company had planned to raise Rs 3000 crore through the issuance of 10-year securities. The company had issued Rs 1900 crore worth of 10-year bonds in November 2022.