HDFC bank raises 739 crore rupees via masala bond in overseas markets
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 â€œmasalaâ€ 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.
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