HDFC Bank said it has raised Rs 739 crore by issuing the rupee-denominated masala bonds in the overseas markets.
HDFC Bank has issued and allotted rupee-denominated bonds overseas on September 30, 2021, the lender said in a regulatory filing on Thursday.
The private sector lender will use the proceeds from the issue for banking activities. The subordinated additional tier I bonds are compliant with Basel III norms.
The perpetual bonds, which are unrated and unsecured, carry a coupon rate of 7.55 per cent. The notes (bonds) will be listed on the India International Exchange (IFSC) Ltd and NSE IFSC, it said.
Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt. The rupee-denominated bonds, popularly known as "masala" bonds are instruments that are issued outside India, not in the local currency but the Indian rupee.
In November 2016, the RBI had allowed banks to raise funds by floating the rupee-denominated bonds in overseas markets as part of an additional avenue to raise long term funds.
(With inputs from PTI)