HDFC to raise up to Rs 5000cr by selling bonds
Mortgage lender HDFC Ltd on Friday said it will raise up to Rs 5,000 crore by issuing bonds on private placement basis.
The issue size is of Rs 2,000 crore, with an option to retain oversubscription of Rs 3,000 crore, HDFC said in a regulatory filing. The secured redeemable non-convertible debentures will be open for bidding on September 8, 2020, and will close on the same day.
The redemption date of the bonds, carrying a coupon of 4.95 per cent to be paid annually, is September 9, 2022.
KfW IPEX-Bank, part of German development finance bank KfW, has offered a loan of 10 million euros to Srei Equipment Finance, a wholly owned subsidiary of Srei Infrastructure Finance. The financing is backed by global credit insurer Euler Hermes.
The fund will be utilised to finance machinery from German construction manufacturers, including asphalt machines, road pavers and rollers, for use in Indian infrastructure projects. With banks turning cautious on the NBFC sector, several players are facing liquidity constraints for project and equipment finance.
“This financing is successful because we are able to rely on a framework cover agreement with Euler Hermes. This enables us to finance technical equipment of a lower value under an international export financing agreement,”" said Andreas Ulfer, member of the management board of KfW IPEX-Bank.
“This initiative will help our German and European manufacturing partners to benefit from our strong customer connect in addition to our agile risk understanding in credit buying. We look forward to more such programmes in the future,” said Devendra Kumar Vyas, managing director, Srei Equipment Finance.