DHFL to raise Rs 500 cr funding through perpetual bond issue

DHFL today said it plans to issue debt instruments to raise up to Rs 500 crore on a private placement basis.

"The company proposes to issue non-convertible unsecured subordinated perpetual bonds in the nature of debentures up to an amount of Rs 500 crore on private placement basis," the company said in a regulatory filing.

The issue opens next week on Thursday and closes on the same day.

The bonds bear a coupon rate of 9.85 per cent.

Perpetual bonds carry no maturity date and are no redeemable, so they may be treated as equity than debt.

Dewan Housing Finance Corporation (DHFL) is one of the housing finance companies in India.

It has associate businesses in life insurance, asset management, financial services through its joint ventures and subsidiaries.

Stock of DHFL closed 2.04 per cent up at Rs 460.35 on BSE.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)