The country’s largest private sector lender HDFC Bank on Tuesday said it proposes to raise Rs 50,000 crore from issuance of debt instruments on a private placement mode in the next 12 months.
The company’s board of directors will consider the proposal at its meeting on April 15. “… we wish to inform you that the bank proposes to raise funds by issuing Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long-Term Bonds (Financing of Infrastructure and Affordable Housing) up to total amount of Rs 50,000 crore over the period of next twelve months through private placement mode,” it said in a regulatory filing. Last month, HDFC announced that its board would consider raising funds through non-convertible debentures in tranches aggregating to Rs 57,000 crore.
HDFC Ltd is to be merged with HDFC Bank. The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of 2023-24, subject to regulatory approvals. Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank.