HDFC Plans To Raise Rs 57,000 Crore Through Private Placement

Mumbai
Ahead of the merger with HDFC Bank, the board of mortgage lending major Housing Development Finance Corporation (HDFC) has approved plans to raise another Rs 57,000 crore through the issue of Non-convertible Debentures (NCD). This will be done through multiple tranches, the company said in a release. This is the second major fundraising announced by HDFC in the last two months. On February 26, HDFC raised Rs 25,000 crore through bonds at 7.97 percent coupon rate. It was the country’s largest-ever bond issue. HDFC-HDFC Bank merger is set to take effect by June-July after receiving the necessary approvals from various regulatory authorities. The merger was announced in April last year. Increase in the overall borrowing powers of the Corporation from Rs. 6.00 lakh crore to Rs. 6.50 lakh crore, outstanding at any point of time and recommended the same for approval of the Members of the Corporation by way of postal ballot, the company said in the release. Further, it said that the said decision was taken since the outstanding borrowings of the corporation as on date is approximately Rs 5.70 lakh crore and the Corporation would need to borrow further for its business purposes till the effective merger date.