Housing Development Finance Corporation (HDFC) Limited has issued a post-bidding term sheet for the issuance of non-convertible debentures (NCDs) in an attempt to raise ₹57,000 crore. The mortgage lender offered two-year bonds with a coupon rate of 7.80% in a sale on Wednesday. The term sheet clarifies that the bond sale has a base price of ₹5,000 crore and an additional subscription offer of ₹5,000 crore.
The NCDs issued by HDFC are unsecured and will be placed through private placement. Credit rating agencies CRISIL and ICRA have assigned a ‘AAA’ rating to this bond instrument.
HDFC stated that the debentures issued will be listed within three days from the closing date of each series. The listing will occur in the wholesale debt market segments of both BSE and NSE.
The objective of the NCD issuance is to enhance HDFC’s long-term resources and finance/refinance its housing finance business requirements. The net proceeds from the fund raised will be utilized for this purpose.
The coupon payments for the NCDs will be made annually, with the payment dates set for June 2, 2024, and June 2, 2025.
In the event of a default in coupon payment or principal redemption, HDFC clarified that an additional interest of at least 2% per annum over the coupon rate will be payable by the company until the defaulted amount, along with the delay penalty, is paid.
The bidding for HDFC’s NCDs took place from May 31 to May 31, and the company raised ₹8,325 crore from this bond issue. The current issuance is part of HDFC’s approved plan to raise ₹57,000 crore through NCDs, as announced by its board of directors in March 2023.
