Reports indicate that companies raised more than Rs 35,000 crore through issue of non-convertible debentures (NCDs) in 2012, which is higher than the Rs 12,753 crore garnered in the preceding year.
Recently, HDFC issued Rs 250 crore NCDs with a green shoe option to raise another Rs 250 crore.The mortgage lender raised the amount to meet general corporate needs, reports suggest.
The financial institution has reportedly offered an annualised interest of 9.05 per cent per annum on the NCDs that have a maturity of five years.
Private sector lender Axis Bank was the arranger of the issue. HDFC is the countryÂ’s largest home loan provider with cumulative disbursements of over Rs 3.74 lakh crore as at March 31, 2012.
Non-Convertible Debentures are loan-linked bonds issued by a company that cannot be converted into stock and usually offer higher interest rate than convertible debentures.
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