HDFC set to raise up to Rs 7,200 crore by ECBs

Also planning to raise Rs 5,000 crore simultaneously by NCDs

Housing Development Finance Corporation (HDFC), India’s largest mortgage lender, is set to raise $500 million (about Rs 3,200 crore) through external commercial borrowing (ECB) for which it had received approval from the Reserve Bank of India (RBI); the company had also appointed arrangers.

According to sources, the mandate has been bagged by investment bankers which include Bank of America Merrill Lynch, Citibank and State Bank of India.

HDFC had informed the exchanges in April and the said approval from the central bank was valid for a period of six months.

A company spokesperson refused to comment on the matter.

The company is also planning to raise Rs 5,000 crore simultaneously by secured redeemable non-convertible debentures and warrants.

The lender will seek its shareholders’ approval for these fund-raising plans at the annual general meeting scheduled later this month.

The warrant holder will be entitled to exchange these with equity shares of HDFC at a premium and in line with present norms, the financier said in an earlier notification to the exchanges.

HDFC had posted eight per cent year-on-year growth in standalone net profit for the March 2015 quarter at Rs 1,862.43 crore, due to growth in the loan book and improvement in asset quality.