The issue was launched on Tuesday on the electronic book platform to raise Rs 5,000 crore with an option to retain subscription for additional Rs 20,000 crore
Merger-bound mortgage lender HDFC on Thursday concluded its rupee-bond sale through the private placement route, mopping up Rs 25,000 crore. HDFC said it has raised Rs 25,000 crore of 10-year money by issuing non-convertible debenture (NCDs) carrying a coupon rate of 7.97 per cent per annum. This translates to a spread of 49 basis points over Wednesday's closing of the 10-year government securities yield.
The issue was launched on Tuesday on the electronic book platform to raise Rs 5,000 crore with an option to retain subscription for additional Rs 20,000 crore.
"Today, as the bids opened, there was wide participation from several high-quality investors across insurance companies, pension funds, provident funds, banks and mutual funds. The issue was oversubscribed and received 92 bids amounting to Rs 27,863 crore, of which the company retained 55 investor bids totalling to Rs 25,000 crore," the issuer said.
Housing demand continues to be strong throughout the country and across all categories -- affordable to premium housing. "Our housing penetration is one of the lowest in the world and the mortgage to GDP ratio is about 11 compared to over 20 in many other emerging markets and over 60 in some of the advanced economies," said V S Rangan, an executive director of the lender.
HDFC is awaiting regulatory approvals for its reverse merger with its banking subsidiary in a USD 50-billion deal announced last year. The companies expect to close the transaction in the second quarter of the year.