Mumbai, February 5, 2025
HDFC Life Insurance Company Limited (NSE: HDFCLIFE, BSE: 540777) announced the approval of its second tranche of non-convertible debentures (NCDs) issuance worth ₹1,000 crore, following the Capital Raising Committee (CRC) meeting held on February 5, 2025.Key Financial Highlights of the NCD Issuance
- Size of the Issue:
- 90,000 NCDs of face value ₹1,00,000 each
- Aggregate value of ₹900 crore
- Green shoe option to retain an additional ₹100 crore, bringing the total to ₹1,000 crore
- Listing: The NCDs will be listed on the Wholesale Debt Market (WDM) segment of NSE.
- Tenure: 10 years from the deemed date of allotment, with a call option at the end of 5 years and annually thereafter.
- Security: The debentures are unsecured, rated, subordinated, redeemable, and non-cumulative.
- Coupon/Interest Rate: To be detailed in the Key Information Document (KID).
- Redemption: The debentures will be redeemable on maturity.
Regulatory and Strategic Context
This issuance falls within HDFC Life’s overall approved capital-raising limit of ₹2,000 crore, sanctioned by its Board of Directors on July 15, 2024. The debenture issuance aligns with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.The CRC meeting commenced at 11:00 a.m. and concluded at 11:15 a.m., confirming the company’s commitment to efficient capital allocation.
Management Commentary
Narendra Gangan, General Counsel, Chief Compliance Officer & Company Secretary, stated that this capital raise reinforces the company’s financial stability and enhances its ability to meet long-term capital needs.Market Position and Outlook
With this issuance, HDFC Life continues to strengthen its capital structure and maintain its robust solvency position. The move also aligns with broader industry trends, where leading insurance firms are raising long-term debt instruments to optimize capital efficiency.This development signals strong investor confidence in HDFC Life’s financial health and growth trajectory.