The board of the largest mortgage lender Housing Development Finance Corporation (HDFC) has approved plans to raise an additional Rs 57,000 crore through the issuance of non-convertible debtentures before the merger with HDFC Bank (NCD). According to a press statement from the corporation, this will be done in several tranches.

In the previous two months, HDFC has announced a second significant fundraising effort. On February 26, HDFC issued bonds with a yield rate of 7.97 percent to raise Rs 25,000 crore. It was the biggest bond offering the nation had ever seen. The merger of HDFC and HDFC Bank is anticipated to go into effect between June and July after acquiring the relevant regulatory clearances. In April of last year, the merger was declared.

“Increase in the overall borrowing powers of the Corporation from Rs. 6.00 lakh crore to Rs. 6.50 lakh crore, outstanding at any point of time and recommended the same for approval of the Members of the Corporation by way of postal ballot,” the company said in the release.

Further, it said that the said decision was taken since the outstanding borrowings of the corporation as on date is approximately Rs 5.70 lakh crore and the Corporation would need to borrow further for its business purposes till the effective merger date. On March 17, the company said its board would consider raising funds through NCDs in tranches aggregating to Rs 57,000 crore.

HDFC announced in April of last year that its board has approved the union of HDFC Investments Ltd and HDFC Holdings Limited with HDFC Bank Limited. As part of the strategy, HDFC will use the transformational merger to buy a 41 percent interest in HDFC Bank. The merger of HDFC and HDFC Bank, which is anticipated to go into effect in June or July, will provide the combined company with more chances for growth, according to HDFC Vice Chairman and CEO Keki Mistry.