New Delhi:

Mortgage lender HDFC will raise up to Rs 5,500 crore by issuing bonds on private placement basis to shore up its resources.

The secured redeemable non-convertible debentures (NCDs) issue will have a base size of Rs 4,000 crore with an option to retain oversubscription of up to Rs 1,500 crore.

“The object of the issue is to augment the long-term resources of the Corporation,” HDFC Ltd said in a regulatory filing on Tuesday.

The largest mortgage lender of the country said it will use the proceeds from the issue for financing or refinancing the housing finance business requirements.

The bonds issue opens on November 17, 2022 and closes the same day.

Housing Development Finance Corporation (HDFC), set for a merger with its subsidiary HDFC Bank, will offer a coupon at 7.70 per cent per annum on the bonds.

The tenor of the bonds is of three years.

HDFC stock was trading at Rs 2,667.10 on the BSE, up 0.21 per cent from the previous close.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)