InvestorQ : Why is HDFC planning to raise Rs.4000 crore in the market by issue of bonds?
Rashi Mehra made post

Why is HDFC planning to raise Rs.4000 crore in the market by issue of bonds?

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sarah Leo answered.
4 months ago
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HDFC will raise Rs.4000 crore by issuing bonds on private placement basis. The issue size of the secured redeemable non-convertible debentures will be Rs.2100 crore with option to retain over-subscription up to Rs.1900 crore. The issue will open on June 15 and also close on the same day. The bonds will offer a coupon rate of 7.25% payable annually and will lbe redeemed in June 2030. The main purpose of this fund raising is to augment long-term resources of HDFC, so as to be prepared with a war chest when the growth finally revives. HDFC will deploy the proceeds of the issue in financing and refinancing the housing business.

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