National Housing Bank (NHB) is set to raise up to Rs 4,000 crore through bonds on June 18, according to sources in the money market.
The bonds will have a base issue size of Rs 2,000 crore with a greenshoe option of an additional Rs 2,000 crore. A greenshoe option allows the underwriter to issue more bonds than initially planned if investor demand exceeds expectations.
These bonds issued by NHB will mature in 3 years, 2 months, and 19 days, specifically on September 8, 2027.
Bidding for these bonds will occur on June 18 through the National Stock Exchange of India’s (NSE) electronic bidding platform.
CRISIL and CARE have assigned these bonds a ‘AAA’ rating with a ‘stable’ outlook.
The minimum application size for these bonds is Rs 1 lakh, and thereafter in multiples of Rs 1 lakh.
Earlier this month, entities like Northern ARC Capital, National Bank for Agriculture and Rural Development (Nabard), Rural Electrification Corp (REC), and LIC Housing Finance also successfully raised funds through bond issuances. Nabard raised Rs 5,000 crore with bonds maturing in 5 years, 5 months, and 22 days at a coupon rate of 7.64 percent, while REC raised Rs 4,000 crore with bonds maturing in over 10 years at a coupon rate of 7.35 percent.
