HDFC raises Rs 500 crore via masala bonds

Mortgage lender HDFC on Friday said it has raised Rs 500 crore through rupee-denominated bonds from overseas investors.

"The corporation has completed the fourth issue of rupee denominated-bonds to overseas investors of issue size Rs 500 crore," HDFC said in a regulatory filing to stock exchanges.

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

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

In July this year, in the first ever masala bond issue, HDFC had raised Rs 3,000 crore through rupee-denominated bonds that got over-subscribed by 4.3 times.

The rupee-denominated bonds or masala bonds are instruments through which Indian entities can raise funds by accessing overseas capital markets, while the bond investors hold the currency risk.