Top Indian Masala Bond Seller Returns to Market After Tax Change
- Mortgage lender sold 5 billion rupee-denominated notes
- Indian government has withdrawn tax on bonds sold overseas
Photographer: Vivek Prakash/Bloomberg
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India’s biggest issuer of offshore rupee bonds sold the first masala note by a local company in half a year, after the government relaxed taxation on overseas borrowings and the Indian currency rebounded in recent weeks.
Housing Development Finance Corp. raised five billion rupees ($70 million) via a sale of five-year 8.75 percent notes, it said in an exchange filing. That was higher than the coupon of 6.73 percent the nation’s largest mortgage lender offered when it previously sold masala debt a year ago.