HDFC to raise up to Rs 500 crore via masala bonds

New Delhi: Mortgage lender HDFC on Thursday said it will raise up to Rs 500 crore through rupee-denominated bonds from overseas investors.

"Pursuant to the approval of the Board of Directors of the corporation at its meetings held previously, the corporation is contemplating, subject to market conditions, undertaking the fourth issuance of Rupee Denominated Bonds to overseas investors...Issue size will be up to Rs 500 crore," HDFC said in a regulatory filing to stock exchanges.

The issue will open on October 1 and close on the same date.

"The pricing and tenure of the bonds to be issued pursuant to the said issue will be intimated to in the due course," the company added.

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.