Key Points
Issuance of 90,000 NCDs with face value of Rs 1,00,000 each
Fundraising part of Rs 2,000 crore approved plan
Bonds to be listed on NSE Wholesale Debt Market
Ten-year term with early redemption option
This decision was taken during the Capital Raising Committee (CRC) meeting held on February 5, 2025.
Earlier, the company had informed about this meeting through an intimation dated February 1, 2025. The issuance is part of HDFC Life's plan to raise funds up to Rs 2,000 crore, which was approved by its Board of Directors on July 15, 2024. The latest tranche is the second series of this fundraising initiative.
Non-convertible debentures (NCDs) are debt instruments that cannot be converted into shares or equity. They are issued by companies to raise funds and provide investors with a fixed income.
As per the proposal approved by the CRC, the company will issue up to 90,000 NCDs, each carrying a face value of Rs 1,00,000, amounting to Rs 900 crore. Additionally, there is an option to retain an extra Rs 100 crore through a green shoe option, taking the total issuance to Rs 1,000 crore. The NCDs will be unsecured, rated, listed, subordinated, redeemable, fully paid-up, and non-cumulative in nature.
The company said "We wish to inform that in furtherance to the in-principle approval accorded by the Board, in its meeting held on July 15, 2024, the CRC in its meeting held today, inter alia, considered and approved the proposal for raising of funds through issuance of up to 90,000 NCDs, each having a face value of Rs 1,00,000 for an aggregate nominal value of up to Rs 900,00,00,000".
The bonds will be issued for a period of ten years from the Deemed Date of Allotment. However, HDFC Life has the option to redeem them after five years and every year thereafter.
The company plans to list these NCDs on the Wholesale Debt Market (WDM) segment of the National Stock Exchange of India Ltd (NSE).
This fundraising is part of HDFC Life's strategy to strengthen its financial position and support its business growth.
