HDFC raises Rs 3,000 cr via India's first masala bonds
By F9 Team : 19-Dec-2016
The foreign owned private bank, HDFC, in a statement said that, the bank has been permitted by the central bank, to raise another Rs. 3,000 crore through issuing masala bonds. The private bank, HDFC, has already exhausted its limit of raising Rs. 5000 crore through issuing masala bonds, previously, and now received permission to raise another Rs. 3000 crore.
Speaking to the press reporters, the Vice Chairman and Chief Executive of HDFC, Keki Mistry told, “We have an approval from the RBI to raise more money. I think we have approval for Rs 3,000 crores. But, we will wait and watch.”
He said that the company has successfully raised Rs. 5000 crore through the route of issuing masala bonds, wherein the company in four tranches through masala bonds overseas denominated in Indian currency.
Owing to the developments like rate hike by Federal Bank and other similar actions, while the interest rate for the fund raising in the first tranche was 8.3 per cent, the interest rate came down to 7.25 per cent in the last tranche of fund raising.
He also said that, this additional Rs. 3000 crore fund rising will be initiated from January next year, when the holiday season in the west is over. He cited reasons for this decision to be as this is not probably the best time to raise fresh money owing to the Fed policy that has recently come out that has hinted at higher rates by the Fed.
He also noted that the demonetisation move taken by the Indian government has slowed down the loan demand in the domestic market. Mistry also added that there could be surge in prices after such a decline in the loan demand, similar to the post Lehmann experience in the years 2008-09.