HDFC to Raise Rs 525 Crore to Augment Resources

New Delhi: Housing finance major HDFC on Wednesday said it will raise Rs 525 crore through debt instruments on a private placement basis to augment its long-term resources.

Housing Development Finance Corporation (HDFC) will issue secured redeemable non-convertible debentures (NCDs) on March 11, 2016 to raise the required sum, it said in a filing to the BSE.

"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 or refinancing the housing finance business requirements of the Corporation", it added.

The debt instruments to be maturing for April 2019 carry a coupon rate of 8.72 per cent.

However, only the person specifically addressed through a communication would be eligible for the subscription of the debentures, HDFC said, adding that no other person can apply.

HDFC shares, on Wednesday, ended 1.31 per cent lower at Rs 1,131.05 apiece on the BSE, whose benchmark Sensex index finished up 0.55 per cent.