Housing Development Finance Corporation (HDFC) Ltd is planning to raise about ₹3,000 crore by issuing its first unrated Synthetic Indian Rupee (INR) Notes to overseas investors. It is the first Indian public issuer of Synthetic INR Notes.

The Notes, which will be in the nature of rupee denominated bonds, will carry a fixed coupon and have a tenor of three years and one month.

The issuance will be for ₹2,000 crore, with an option to retain oversubscription of up to ₹1,000 crore.  The Corporation proposes listing of the Notes on the London Stock Exchange. Pricing will take place on or before July 15, subject to market conditions. Settlement shall be in the following week.

Deepak Parekh, Chairman of HDFC Ltd, said: “HDFC is keen to diversify its borrowing profile by tapping investors through this issue of Rupee Denominated Bonds.

This milestone issuance, the first-of-its-kind should validate the attractiveness of the instrument and set a good benchmark.”

US registration

The Bonds will not be registered under the US Securities Act and will not be offered or sold the US, except in accordance with Regulation S or pursuant to any other exemption from the registration requirements of the US Securities Act.

As on March 31, 2016, HDFC Ltd had outstanding gross loans of ₹2,91,500 crore. Foreign investors hold majority stake (77 per cent) in the housing finance company.