National Housing Bank plans to raise up to Rs 4,000 crore through bonds on June 18, money market sources said.
The bonds have a base issue size of Rs 2,000 crore and a greenshoe option of Rs 2,000 crore. A greenshoe option gives the underwriter the right to sell investors more bonds than planned if the demand is higher than expected.
NHB's bonds will mature in 3 years, 2 months and 19 days on September 8, 2027.
Bidding for the bonds will take place on June 18, on the electronic bidding platform of National Stock Exchange of India (NSE).
The bonds have been rated ‘AAA’ with a ‘stable’ outlook by CRISIL and CARE.
The minimum application size of the bonds is Rs 1 lakh and in multiples of Rs 1 lakh thereafter.
On June 13, Northern ARC Capital, National Bank for Agriculture and Rural Development, Rural Electrification Corp, and LIC Housing Finance raised funds through bonds.
National Bank for Agriculture and Rural Development (Nabard) raised Rs 5,000 crore through bonds maturing in 5 years 5 months and 22 days at a coupon rate of 7.64 percent.
REC raised Rs 4,000 crore through bonds maturing in over 10 years at a coupon rate of 7.35 percent.
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