Cholamandalam Investment to set up a housing finance company as an unit

The company is looking at raising around Rs 3,500 cr through masala bonds

Cholamandalam Investment and Finance Company Ltd has said that it is planning to launch a Housing Finance Company (HFC) and to raise around Rs 3,500 crore ($500 million) by issuing 3,500 masala bonds in one or more tranches. The bonds will be issued in the nature of secured redeemable, non-convertible debentures of a face value of Rs 1 crore each.

The company, in a regulatory filing today said that the Board of Directors has considered and approved "setting up of a Housing Finance Company (HFC) as a subsidiary and approved necessary authorisations to make an application to National Housing Board and