HDFC Bank share price: HDFC Bank raises Rs 739 crore via masala bond

New Delhi: HDFC Financial institution on Thursday mentioned it has raised Rs 739 crore by issuing the rupee-denominated masala bonds within the abroad markets. HDFC Financial institution has issued and allotted rupee-denominated bonds abroad on September 30, 2021, the lender mentioned in a regulatory submitting.

The personal sector lender will use the proceeds from the problem for banking actions.

The subordinated extra tier I bonds are compliant with Basel III norms.

The perpetual bonds, that are unrated and unsecured, carry a coupon fee of seven.55 per cent.

The notes (bonds) shall be listed on the India Worldwide Change (IFSC) Ltd and NSE IFSC, it mentioned.

Perpetual bonds carry no maturity date, so they could be handled as fairness, not as debt.

The rupee-denominated bonds, popularly often called “masala” bonds are devices which are issued outdoors India, not within the native forex however the Indian rupee.

In November 2016, the RBI had allowed banks to lift funds by floating the rupee-denominated bonds in abroad markets as a part of a further avenue to lift long run funds. Shares of HDFC Financial institution closed at Rs 1,595.50 apiece on BSE, up 0.14 per cent from the earlier shut.