New Delhi, Sep 4 (PTI) Mortgage lender HDFC Ltd on Friday said it will raise up to Rs 5,000 crore by issuing bonds on private placement basis.

The issue size is of Rs 2,000 crore, with an option to retain oversubscription of Rs 3,000 crore, HDFC said in a regulatory filing.

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The secured redeemable non-convertible debentures will be open for bidding on September 8, 2020, and will close on the same day.

The lender said the eligible investors would be only the persons who are specifically addressed through communication to apply for the debentures.

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The redemption date of the bonds, carrying a coupon of 4.95 per cent to be paid annually, is September 9, 2022.

"The object of the issue is to augment the long-term resources of the Corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the Corporation," it said in the filing.

HDFC stock closed 2.19 per cent down at Rs 1,770 apiece on BSE.

(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)