Housing Development Finance Corporation (HDFC) has released its prospectus last month and plans to sell bonds of over USD 5 million from September 22 until November 12.
The bonds will be sold at a rate of about 65 US dollars. Profits from these bonds bought for over a period of 10 years will be paid biennially at a rate of 7 percent. The company has sold bonds twice before in 2013 and later in 2018 whilst all bonds sold in 2013 have reached maturity, HDFC has paid 2 payments for bonds issued in 2018.
Managing Director Raheema Saleem highlighted HDFC was the first company to issue bonds, speaking to the media. She added the bonds are currently sold for a duration of 10 years, whilst the past bonds were only sold for a duration of one year.
Housing Development Finance Corporation (HDFC) Plc. was established as a specialized Housing Finance Company in the Maldives in 2004 under state ownership and privatized in July 2008 through a Public-Private Partnership with a joint foreign investment of 51% shares held by International Finance Corporation (IFC) of the World Bank Group, Asian Development Bank (ADB) and HDFC Investments Ltd. of India. HDFC Plc. remains as the only specialized Housing Finance Institution in the Republic of Maldives.