HDFC plans up to 200-bln-rupee bond offering on Mon, sources say

Informist, Thursday, Jun 8, 2023

–Sources: HDFC plans to raise up to 200 bln rupees via 10-year bond

–HDFC to seek bids for 10-year bond issue on Monday

By Subhana Shaikh

MUMBAI – Housing Development Finance Corp Ltd plans to hit the debt market with yet another massive bond offering worth up to 200 bln rupees, sources aware of the development told Informist.

The issue will have a base size of 100 bln rupees and a greenshoe option of another 100 bln rupees. The housing financier will upload the issue on the electronic bidding platform today and invite bids for the issue on Monday, sources said.

The coupon will be derived out of uniform bidding on the electronic platform. Market participants expect HDFC to raise funds at a coupon of 7.75%.

Axis Bank and ICICI Bank are the lead managers to the issue. The bonds are rated ‘AAA’ by CRISIL Ratings, and will be allotted on Tuesday.

The bond offering is part of HDFC’s borrowing spree ahead of its upcoming merger into HDFC Bank. So far in the current financial year, HDFC has raised 328.75 bln rupees through the issue of five bonds. In late March, the lender’s board had approved borrowing up to 570 bln rupees through bonds.

According to merchant bankers, this could be HDFC’s last bond issuance before it is merged into HDFC Bank.

In the financial year ended March, HDFC raised 784.14 bln rupees through 11 bonds, according to data from the National Securities Depository Ltd. Of this, 643.02 bln rupees were raised through seven bonds maturing in 10 years.

At 1502 IST, shares of HDFC were up 0.1% at 2,652.60 rupees on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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