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    DHFL to raise Rs 10,000 crore via NCDs, issue open on August 29

    Synopsis

    The follow-on secured NCD Issue has a new issue structure with also the 7-year tenor with annual frequency of interest payment, he said, adding, interest rate on proposed NCDs varies between 9.05 per cent to 9.25 per cent.

    PTI
    NEW DELHI: Mortgage firm DHFL today said it plans to raise Rs 10,000 crore from non-convertible debentures (NCDs) to fund business growth.

    The NCD issue of face value of Rs 1,000 each with a base issue size of Rs 2,000 crore and an option to retain oversubscription of up to Rs 8,000 crore aggregating up to Rs 10,000 crore opens on August 29, DHFL said in a statement.

    With the government taking several steps to grant housing finance companies better supply of funds for the low-cost housing sector, the company is tapping various funding sources innovatively at optimal cost, DHFL Chairman and Managing Director Kapil Wadhawan said.

    "Our first NCD public issue set new benchmarks in housing finance sector and our forthcoming follow on issue will seek to replicate the aggressive penetrative marketing to tap the pool of liquidity available in the market. While reducing our total cost of borrowing, this Issue will establish a strong yield curve for DHFL instruments in the market," he said.

    The follow-on secured NCD Issue has a new issue structure with also the 7-year tenor with annual frequency of interest payment, he said, adding, interest rate on proposed NCDs varies between 9.05 per cent to 9.25 per cent.

    Retail individual investors and High Networth Individuals (HNIs) have a combined allocation ratio of 60 per cent, it said.

    Interest on application money is at 8 per cent and interest on refunded money is at 6 per cent, it said.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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