HDFC raises Rs 5 billion by issuing masala bonds; stock up by 0.57%

It will offer a coupon of 8.75 per cent per annum payable semi-annually for tenor of 5 years and one day

HDFC said on Monday that it has issued masala bonds under its medium-term note (MTN) programme and raised Rs 5 billion. The rupee denominated bonds (RDBs), popularly known as masala bonds, are issued under the MTN programme, it said in a regulatory filing. The corporation has closed the said issue Monday with the issue size of Rs 5 billion," HDFC said.

It will offer a coupon of 8.75 per cent per annum payable semi-annually for tenor of 5 years and 1 day. The bonds are unrated and will be listed on the LSE's International Securities Market (ISM), it said. Masala bonds are instruments through which Indian entities can raise funds by accessing overseas capital markets, while the bond investors hold the currency risk. Stock of HDFC closed 0.57 per cent up at Rs 1,898.35 apiece on the BSE.