HDFC raises Rs 500 cr via non-convertible debentures

NEW DELHI: Mortgage lender HDFC today raised Rs 500 crore through non-convertible debentures (NCDs) for general corporate requirements.

Non-Convertible Debentures are loan-linked bonds issued by a company that cannot be converted into stock and usually offer higher interest rate than convertible debentures.

According to sources, one-day NCD issue closed for Rs 250 crore with a green shoe option to raise another Rs 250 crore.

The funds were raised to meet general corporate needs, sources said.

Investors are being offered an annualised interest of 9.05 per cent per annum through the NCDs that have a maturity of five years.

Private sector lender Axis Bank was the arranger of the issue.

HDFC is the country's largest home loan provider with cumulative disbursements of over Rs 3.74 lakh crore as at March 31, 2012.

Overall, companies last year had mopped-up over Rs 35,000 crore through the NCDs route, a steep hike from Rs 12,753 crore garnered in the preceding year.