Cholamandalam Investment and Finance Company (Chola) today said it will raise Rs 3,500 crore (USD 500 million) through masala bonds on a private placement basis.
The decision was taken at the company's board meeting held today.
The company said the board today approved the issuance of "3,500 masala bonds in the nature of secured redeemable, non- convertible debentures of a face value of Rs 1 crore each at par aggregating to USD 500 million (Rs 3,500 crore) in one or more tranches on private placement basis".
The company has not mentioned how it will use the proceeds of the funds to be raised through these masala bonds.
Masala bonds are specialised debt instruments that companies can issue to raise funds in overseas markets to fund their capital needs.
The Chennai-based Murugappa group's financial arm Chola provides services such as vehicle loans, home loans, SME loans, investment advisory services, stock broking, among others.The stock of the company closed 0.91 percent up at Rs 1,299.75 on the BSE.