HDFC to raise Rs1,000 cr via private NCD placement

Mortgage lender Housing Finance Development Corporation Ltd (HDFC) on Thursday said it will raise Rs1,000 crore by issuing non-convertible debentures to cater to its housing finance business needs. HDFC will issue secured redeemable non-convertible debentures on a private placement basis to raise the amount.

"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 of the Corporation," HDFC said in a Bombay Stock Exchange filing.

The debt instruments are open for subscription for only those persons who are specifically addressed through a communication to apply for the debentures, it added. The issue is to open on 9 March, and will close on the same day.

On Wednesday, the company had said it will raise Rs2,000 crore through private placement to fund financing needs. In October, HDFC had raised over Rs10,000 crore through a mix of warrants and non-convertible debentures to qualified institutional investors.

The stock of the company closed at Rs1,123.60 on the BSE, 2.12 per cent up from the previous level.