Hinduja Leyland Finance Eyes the Bond Market
Hinduja Leyland Finance (HLF) is planning to raise 5.75 billion rupees ($60.64 million) through a fresh issue of two-year bonds and a reissue of its 9.3% December 2032 Tier II notes, three bankers said on Tuesday. For more market updates, visit Dhan Kirti.
Key Details
Issue size: ₹5.75 billion (about $60.64 million)
Greenshoe option: The total includes a greenshoe option of 3 billion rupees.
Instruments: A fresh issue of two-year bonds and a reissue of 9.3% Tier II notes maturing December 2032
Source: Three bankers, as reported by Reuters
A greenshoe is an option to retain extra subscription beyond the base issue size, so the final amount raised depends on investor demand.
Why Multi-Tenor Issuance Matters
NBFC can have both short and long term maturity options allowing them to match their funding requirements to their loan book. Tier II Notes will also increase regulatory capital to provide more lending growth.
About Hinduja Leyland Finance
The company was established in 2008. It is a subsidiary of Ashok Leyland and is part of the Hinduja group. The company provides finance for commercial vehicles, two Wheeler, passenger vehicle, construction equipment and tractor. The company also provides housing finance through its subsidiary. The long-term subordinated debt instruments have been assigned a rating of CRISIL AA+ and CARE AA+. They have a stable outlook.
What to Watch
The final issue size and whether the greenshoe is used
Pricing of the new two-year bonds
Investor demand and rating updates
If you follow unlisted companies, you can browse shares on Dhan Kirti.
Disclaimer: This article is for informational purposes only and is not investment advice. Details are based on media reports and may change. Please consult a SEBI-registered advisor before investing.
Frequently Asked Questions (FAQs)
1. How much does Hinduja Leyland Finance plan to raise?
It plans to raise ₹5.75 billion (about $60.64 million), including a ₹3 billion greenshoe option.
2. Which instruments are being issued?
A fresh issue of two-year bonds and a reissue of 9.3% December 2032 Tier II notes.
3. What is a greenshoe option?
It lets the issuer accept additional subscriptions beyond the base issue size if demand is strong.
4. What does Hinduja Leyland Finance do?
It is an NBFC that finances commercial vehicles, two-wheelers, cars, construction equipment, and tractors.
5. Where can I find more company updates?
Visit Dhan Kirti or its shares section.
