HDFC plans second issue of masala bonds
Published: Aug 23, 2016
By TIOLCORP News Service
NEW DELHI, AUG 23, 2016: THE masala bonds are becoming the flavour of borrowings by the Indian corporate. A short while after selling its first issuance of rupee-denominated debt to overseas buyers, the Housing Development Finance Corporation (HDFC) is contemplating another such issue. This time HDFC, India's largest mortgage lender, is planning to raise another Rs. 2000 crores through this issue. It is expected that the issue will be launched in the next three to six weeks and talks with various investment bankers are already on for the same. The pricing for the issue is, however, expected to be 40-50 basis points owing to higher demand.
In the month of July, HDFC had raised Rs. 3000 crore from such sale of rupee-denominated bonds. This issue had received a stupendous response from investors. Given the zero to negative interest rates prevailing in Europe and Japan and owing to relatively stable rupee-dollar exchange rate India seems to be having an edge over its contemporaries. The earlier issue of 8.33% three year bonds was managed by Axis Bank, Credit Suisse and Nomura. The bonds were thereafter listed on the London Stock Exchange.
