Housing Development Finance Corporation (HDFC) has decided to sell bonds of over USD 5 million.
HDFC released its prospectus last month and plans to sell bonds on September 22 until November 12. The bonds will be sold at a rate of about 65 US dollars. Profits from these bonds bought for over a period of 10 years will be paid biennially at a rate of 7 percent.
Speaking to media, Managing Director Raheema Saleem highlighted HDFC was the first company to issue bonds. She further noted the bonds are currently sold for a duration of 10 years, while the past bonds were sold only for a duration of 1 year.
HDFC has sold bonds twice before, once in 2013 and later in 2018. While all bonds sold in 2013 have reached maturity, HDFC has paid 2 payments for bonds issued in 2018.
HDFC was incorporated in 2004 with 49% share of Government of Maldives, 18% share of International Finance Corporation, 18% share of Asian Development Bank (ADB) and with 15% share of HDFC Investments Limited of India.