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HDFC Bank said on Thursday it had raised Rs 739 crore by issuing rupee-denominated masala bonds in overseas markets.
HDFC Bank issued and allotted overseas rupee-denominated bonds on September 30, 2021, the lender said in a regulatory filing.
The private sector lender will use the proceeds of the issue for banking activities.
Category I additional subordinated bonds comply with Basel III standards.
Perpetual bonds, which are neither rated nor guaranteed, carry a 7.55 percent coupon.
The notes (bonds) will be listed on the India International Exchange (IFSC) Ltd and the NSE IFSC, he said.
Perpetual bonds do not have a maturity date, so they can be treated as equity and not debt.
Rupee-denominated bonds, commonly known as “masala†bonds, are instruments issued outside India, not in the local currency but in Indian rupees.
In November 2016, the RBI authorized banks to raise funds by floating rupee-denominated bonds in foreign markets as part of an additional opportunity to raise long-term funds. HDFC Bank shares closed at Rs 1,595.50 each on BSE, up 0.14% from the previous close.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
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