HDFC to raise up to Rs 2,500 cr by issuing bonds

Mortgage lender HDFC Ltd will raise up to Rs 2,500 crore by issuing bonds on a private placement basis. The secured redeemable non-convertible debentures are to be allotted on a private placement basis on Friday for an issue size of Rs 2,500 crore, HDFC Ltd said in a regulatory filing on Tuesday.

"The object of the issue is to augment the long-term resources of (HDFC). The proceeds of the present issue would be utilized for financing/refinancing the housing finance business requirements of the (company)," it said. The bonds will be offered at a coupon rate of 7.21 percent per annum.

Shares of HDFC closed at Rs 2,411.20 apiece on the BSE, down 0.46 percent as compared with the previous close.