Housing Development Finance Corporation (HDFC) says it will raise more funds from mortgage-backed securities following the runaway success of the first two tranches. rn
rnLast week it raised Rs. 250 mn from DFCC, Commercial Bank and Union Assurance. Earlier this year it raised Rs. 500 mn from National Savings Bank.
rnrnPlacing agent Capital Alliance says the latest issue was snapped up ahead of schedule.
rnldblquote It had been oversubscribed substantially,
dblquote Capital Alliance CEO Ajith Fernando told LBR.
rnrnOriginally HDFC was planning to raise only Rs. 1.3 bn from mortgage-backed securities, but now they have increased the target to Rs. 2 bn.
rnrnldblquote We have budgeted Rs. 1.3 bn. But now we are intending to go up to Rs. 2 bn,
dblquote says HDFC General Manager C. A. Sarathchandra.
rnrnSecuritising became cost-effective after the government lifted stamp duty in the last budget. All these funds will go to satisfy the rising demand for housing loans from HDFC.
rnrnFollowing an ADB