Housing Development Finance Corp (HDFC), National Bank for Agricultural and Rural Development (Nabard) and Power Finance Corporation (PFC) are lining up bond sales in the coming weeks, to the tune of ₹10,000 crore. HDFC is likely to start the debt issuance by raising ₹5,000 crore through a two-year bond sale. Nabard may follow with an issue of ₹ 5,000 crore bonds that mature in November 2026 with an early put-call option for June 2, 2025. This bond is rated AAA by ICRA and CRISIL. Finally, PFC is planning two tranches of bond sales, raising ₹4,000 crore in total. The first tranche has a base size of ₹500 crore and an additional subscription option of ₹1,500 crore with a maturity in 2030. The second tranche also has a base size of ₹500 crore and an additional subscription option of ₹1,500 crore with a maturity of 2032. Both tranches are rated AAA by rating agencies CRISIL, ICRA and Care.
Corporate debt valuations have become cheaper in the last couple of months due to a sharp decline in government bond yields, which are the benchmark rate. This, coupled with improved liquidity conditions in the banking system, has made corporate debt even more attractive.
HDFC is one of the leading providers of housing finance in India, offering various financial and housing services such as home loans, loan against property, property deals, and credit cards. Nabard is an apex development institution which is engaged in promoting the economic and social development of rural India. PFC is a Government of India owned financial institution that is involved in the financing and development of the power sector.
