HDFC to mop-up Rs 250 cr via debentures

Mortgage lender HDFC will raise Rs 250 crore through non-convertible debentures (NCDs) for general corporate requirements.

Non-Convertible Debentures are loan-linked bonds issued by a company that cannot be converted into stocks and usually offer higher interest rate than convertible debentures.

According to sources, the one-day NCD issue would open and close on November 26.

The funds were raised to meet general corporate needs, sources said.

Investors are being offered an annualised interest of 9.8% per annum through the NCDs.

"HDFC issues 14th month NCD of Rs 250 crore with a green shoe option at 9.8% annual coupon rate," a source said.

Standard Chartered Bank is the arranger of the issue.

Rating agencies like Crisil and ICRA have assigned 'AAA' score, which indicates highest safety, to HDFC's NCD.

Overall, Indian companies mopped up over Rs 16,000 crore in the current fiscal by issuing NCDs to retail investors, garnering nearly three times the amount that was targeted.

For the quarter ended September 30, 2013, HDFC reported a 10% increase in net profit at Rs 1,266.33 crore, while total income increased to Rs 5,945.94 crore from Rs 5,269.45 crore in the corresponding period last fiscal.