Mumbai, Feb 16 (PTI) Merger-bound mortgage lender HDFC on Thursday concluded its rupee-bond sale through the private placement route, mopping up Rs 25,000 crore.

HDFC said it has raised Rs 25,000 crore of 10-year money by issuing non-convertible debenture (NCDs) carrying a coupon rate of 7.97 per cent per annum. This translates to a spread of 49 basis points over Wednesday's closing of the 10-year government securities yield.

Also Read | Tamil Nadu: Six Fishermen Attacked, Robbed by Unidentified Men in Midsea Near Point Calimere.

The issue was launched on Tuesday on the electronic book platform to raise Rs 5,000 crore with an option to retain subscription for additional Rs 20,000 crore.

"Today, as the bids opened, there was wide participation from several high-quality investors across insurance companies, pension funds, provident funds, banks and mutual funds. The issue was oversubscribed and received 92 bids amounting to Rs 27,863 crore, of which the company retained 55 investor bids totalling to Rs 25,000 crore," the issuer said.

Also Read | 7th Pay Commission: Central Government Likely to Hike DA by 4%, Check How Much Dearness Allowance Employees Will Get.

Housing demand continues to be strong throughout the country and across all categories -- affordable to premium housing. "Our housing penetration is one of the lowest in the world and the mortgage to GDP ratio is about 11 compared to over 20 in many other emerging markets and over 60 in some of the advanced economies," said V S Rangan, an executive director of the lender.

HDFC is awaiting regulatory approvals for its reverse merger with its banking subsidiary in a USD 50-billion deal announced last year. The companies expect to close the transaction in the second quarter of the year.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)