Housing Development Finance Corporation Limited (HDFC) has
become the first Indian corporate to issue offshore
rupee-denominated bonds - commonly referred to as masala bonds
- in a landmark deal that could spur similar transactions from
other potential issuers.
The Indian mortgage lender raised INR30 billion ($446
million) from an offering on the London Stock Exchange that was
three times oversubscribed. The issuance comprised an initial
INR20 billion and a further INR10 billion greenshoe option in
case of oversubscription. The final order book exceeded INR86
Institutional investors made up 82% of allocations and
private banks the remainder, HDFC said in a statement.
The three-year and one month bonds have an annual yield of
8.33%, a discount compared to their traditional domestic
offerings, which stand at 8.38%. It is also lower than the
8.45% the company targeted in its initial guidance.
HDFC’s senior, unsecured notes will pay a
semi-annual coupon of 7.8%....