HDFC raises Rs 500 crore through 4th issue of masala bonds

Largest mortgage lender Corporation (HDFC) has raised another Rs 500 crore by issuing rupee-denominated to overseas investors, taking the tally to Rs 5,000 crore so far.


“With reference to the earlier letter dated October 12, 2016, informing about the opening of the fourth issue of rupee-denominated bonds to overseas investors, aggregating an amount up to Rs 500 crore,” it said in a filing.


“In this connection, Corporation has now informed that the corporation has closed the said issue on October 14, 2016,” it said in a filing.


The issue carries a coupon rate of 7.25 per cent per annum payable semi-annually. The bonds will mature on January 9, 2020, said.


The corporation has raised a total of Rs 5,000 crore through issuance of rupee-denominated bonds in four tranches.


The are instruments through which Indian entities can raise funds by accessing overseas capital markets while bond investors hold the currency risk.


will use the issue proceeds for the housing business as well as general corporate purposes.


The stock closed at Rs 1,319.20, down 1.44 per cent, over Thursday.