Mumbai: India’s largest mortgage lender, Housing Development Finance Corp. Ltd (HDFC) has raised another Rs500 crore by issuing rupee-denominated masala bonds to overseas investors, taking the tally to Rs5,000 crore so far.
“With reference to the earlier letter dated 12 October 2016, informing about the opening of the fourth issue of rupee-denominated bonds to overseas investors, aggregating an amount up to Rs500 crore,” it said in a filing.
“In this connection, Housing Development Finance Corporation has now informed BSE that the corporation has closed the said issue on 14 October 2016…” The issue carries a coupon rate of 7.25% per annum payable semi-annually. The bonds will mature on 9 January 2020, HDFC said.
The corporation has raised a total of Rs5,000 crore through issuance of rupee-denominated bonds in four tranches. The masala bonds are instruments through which Indian entities can raise funds by accessing overseas capital markets while bond investors hold the currency risk.
HDFC will use the issue proceeds for the housing finance business as well as general corporate purposes. HDFC stock closed at Rs1,319.20, down 1.44%, on Friday.