InvestorQ : What is the intent of the Rs.5000 crore that HDFC is planning to raise via bonds?
Khushi Patel made post

What is the intent of the Rs.5000 crore that HDFC is planning to raise via bonds?

Answer
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Anjana Aiyar answered.
5 months ago


The HDFC bonds worth Rs.5000 crore on private placement basis is intended to meet its capital requirements. The institution needs capital to take care of any write-off exigency and also to expand its loan book when the economic demand picks up. The issue size will be Rs.2500 crore with a greenshoe option to retain another Rs.2500 crore in the event of oversubscription. The bonds will mature in December 2021 and will carry a coupon rate of 7.06%. HDFC looks to systematically augment its long term resources so that it is well positioned to capitalize on a revival in the economy. For HDFC, access to funds has never been a problem but it wants to buffer its balance sheet from any short term concerns.