New Delhi: Country’s largest mortgage lender HDFC Ltd plans to raise Rs5,000 crore through rupee denominated bonds (masala bonds).
“The board of directors in its meeting on 4 May will consider the proposal for issuance of rupee denominated bonds to overseas investors up to an amount not exceeding Rs5,000 crore under automatic route during 2017-18,” HDFC said in an exchange filing.
The allowed limit of Rs5,000 crore in a fiscal is over and above the amount that companies can raise through automatic route of external commercial borrowings (ECBs).
In 2016-17, the corporation raised a total of Rs5,000 crore through masala bonds, which is the maximum permitted amount a company can raise through such instruments in a financial year.
Also, the Housing Development Finance Corp Ltd (HDFC Ltd) was the first firm in India to tap the route after RBI permitted it in 2015. Shares of HDFC stock closed 1.93% down at Rs1,537.05 on BSE on Friday.