HDFC to sell bonds worth Rs 500 cr

MUMBAI: Top housing lender HDFC Ltd is planning to raise as much as Rs 500 crore through a bond sale on Monday next week.

The company is looking to raise Rs 250 crore from the bond sale scheduled for October 29, which would come along with a green-shoe option of another Rs 250 crore, investment bankers associated with the deal said.

The three-year bonds would carry a coupon annualised return rate of 8.95 per cent and have been AAA-rated, the highest investment grade, by two leading credit rating agencies Crisil and ICRA, the bankers added.

HDFC has been raising funds to the tune of Rs 100-200 crore through bond sales almost every week, given its strong appetite and the upcoming bond issue is also in line with its strategy, they noted.

This bond sale comes just a day before the Reserve Bank's monetary policy review on October 30, in which the central bank might look at revising its benchmark interest rates.