Active Stocks
Tue Mar 19 2024 09:51:06
  1. Tata Consultancy Services share price
  2. 4,045.00 -2.41%
  1. Tata Steel share price
  2. 151.40 1.20%
  1. NTPC share price
  2. 314.00 -0.99%
  1. HDFC Bank share price
  2. 1,444.35 -0.13%
  1. ITC share price
  2. 417.90 0.12%
Business News/ Industry / HDFC raises $504 million via masala bonds
BackBack

HDFC raises $504 million via masala bonds

HDFC has raised about $504 million through rupee-denominated bonds, or masala bonds, to fund its business expansion

HDFC’s rupee-dominated bond with maturity of 3 years and 1 month carries yield of 7.35% per annum, it said. Photo: MintPremium
HDFC’s rupee-dominated bond with maturity of 3 years and 1 month carries yield of 7.35% per annum, it said. Photo: Mint

New Delhi: Housing Development Finance Corp. Ltd (HDFC) on Friday raised about $504 million (about Rs3,300 crore) through rupee-denominated bonds, or masala bonds, to fund its business expansion. This is the largest issuance of masala bonds out of India, HDFC Ltd said in a regulatory filing on stock exchanges.

Under the Medium Term Note (MTN) programme, HDFC earlier on Friday launched an issue of ,000 crore plus a green-shoe option, it said. “The corporation has closed the masala bonds and raised 3,300 crore," it said.

The bond with maturity of 3 years and 1 month carries 7.35% per annum, it said.

“We wish to inform that the Corporation received an overwhelming response from 29 investors across Asia and Europe. The aggregate demand for the transaction was 2.16 times at Rs4,315 crore ($657 million)," it said.

The masala bonds are unrated and will be listed on the London Stock Exchange, it said.

HDFC had raised Rs500 crore by issuing rupee-denominated masala bonds to overseas investors in October last year. It has raised a total of Rs5,000 crore through issuance of rupee-denominated bonds in four tranches.

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

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 24 Mar 2017, 11:20 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App