HDFC to raise Rs 730 crore via bonds

NEW DELHI: HDFC Ltd today said it will raise Rs 730 crore through private placement of non-convertible debentures.

The mortgage lender said the proceeds will be used to fund its long term capital resources.

"The object of the issue is to augment the long-term resources of the corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements," Housing Development Finance Corporation (HDFC) said in a regulatory filing.

The secured redeemable non-convertible debentures will carry a coupon rate of 8.45 per cent per annum.

The company said it will communicate specifically to the eligible investors and no other persons would be able to subscribe to the debentures.

The issue will open on Tuesday (May 24) and will close on the same day.

HDFC said ICICI Bank is the arranger of the issue.

Shares of the company closed 0.29 per cent up at Rs 1,180.10 apiece on BSE today.