HDFC raises $504 million via masala bonds
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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 Rs2,000 crore plus a green-shoe option, it said. “The corporation has closed the masala bonds and raised Rs 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.