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HDFC mops up Rs 357.50 cr thru NCD issue

Our Bureau

MUMBAI, Dec. 5

HOUSING Development Finance Corporation Ltd (HDFC) has completed a private placement of Rs 150 crore non-convertible debenture (NCD) through the book-building route.

The issue had a greenshoe option to retain oversubscription of up to Rs 150 crore. The company today informed in a release that it had offered the bonds in two options.

Option I had a size of Rs 50 crore for a term of one year and Option II had a size of Rs 100 crore for a term of three years. The issue which opened on November 23, closed for subscription on December 4.

The issue attracted bids of Rs 357.50 crore. Under Option I HDFC received bids of Rs 240.50 crores from investors and retained Rs 183 crores and under Option II received bids of Rs 117 crore from 21 investors and retained the entire amount.

The company said it closed the book at 11.05 per cent per annum under Option I and 11.30 per cent under Option II. The pricing translates to a spread of 62 basis points and 69 basis points over the corresponding sovereign yields for one year and three ye ar tenor respectively.

The issue was rated `AAA' by Crisil and ICRA. The investors in this issue include commercial banks, mutual funds, regional rural banks, PF trusts and corporate bodies. The issue was co-managed by four lead arrangers --- Kotak Mahindra Capital Company, DS P Merrill Lynch Ltd, Standard Chartered Grindlays Bank and J.M.Morgan Stanley Ltd.