HDFC issues terms sheet in regard to ₹57,000 crore fund raise plan. Details here
HDFC's two-year bonds are offered at a coupon rate of 7.80%
PremiumHousing Development Finance Corporation (HDFC) Limited has issued post-bidding term sheet for issuance of non convertible debentures (NCDs), which aims to raise ₹57,000 crore. Mortgage lender has offered these two year bonds at a coupon rate of 7.80 per cent in a sale on Wednesday. In this terms sheet, HDFC has cleared that bond sale will have a base price of ₹5,000 crore along with an additional subscription offer of ₹5,000 crore.
As per the terms sheet issued by HDFC nature of the bond sale will be unsecured and mode of placement will be private placement. CRISIL and ICRA have given 'AAA' rating to this bond instrument of HDFC.
On listing and timeline of the NCD, HDFC said, "The Debentures issued in terms of this Shelf Placement Memorandum will be listed within 3 days from the Issue Closing Date of each series." HDFC went on to add that listing will take place in whole sale debt market segment of BSE and NSE.
On net proceeds of the fund raised via NCD, HDFC said, "The objective of the issue is to augment the long term resources of the Corporation. The proceeds of the present issue would be utilized for financing / refinancing the housing finance business requirements of the Corporation," adding, "The proceeds would be utilized for meeting the Object of the Issue."
Coupon payment frequency has been mentioned 'annual' whereas coupon payment dates would be 2nd June 2024 and 2nd June 2025.
In case of default, HDFC cleared, "In case of default in payment of Coupon and/ or redemption of the principal amount of the Debentures on the respective due dates, additional interest of at least 2% (Two Percent) per annum over and above the Coupon Rate shall be payable by the Company for the defaulting period until the defaulted amount together with the delay penalty is paid."
Bidding for the NCD of HDFC opened on 31st May 2023 and it ended on 31st May 2023. As per the ET report, HDFC raised ₹8,325 crore from this bond issue.
In March 2023, board of directors of HDFC had approved issuance of NCDs to raise fund to the tune of ₹57,000 crore and current bond issue is a part of that fund raise plan.
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