HDFC raises Rs. 25,000 crore in India’s largest rupee bond issue

HDFC raises Rs. 25,000 crore in India’s largest rupee bond issue

Housing Development Finance Corp Ltd (HDFC) said it has raised Rs. 25,000 crore in 10-year bonds, dubbing it “India’s largest rupee bond issuance”.

The fundraise comes in the run up to its merger with banking arm HDFC Bank. It has raised Rs. 25,000 crore in non-convertible debentures carrying a coupon of 7.97%. This translates to a spread of 49 basis points over closing of the 10-year government security yield.

“The issue received a phenomenal response across all investor categories,” it said in a statement. Earlier, HDFC launched the issue to raise Rs. 5,000 crore, with an option to retain oversubscription of another Rs. 20,000 crore.

According to HDFC, as soon as the bids opened, there was wide participation from investors across insurance companies, pension funds, provident funds, banks and mutual funds. The issue was oversubscribed and received 92 bids of Rs. 27,863 crore, of which the company retained 55 investor bids of Rs. 25,000 crore.