HDFC, India’s largest mortgage lender, will raise up to Rs 5,500 crore by issuing secured redeemable non-convertible debentures (NCDs) via private placement.

The NCDs, which have a rating of 'AAA' by major agencies like CRISIL and ICRA, will have a base size of Rs 4,000 crore, with an option to retain an oversubscription of up to Rs 1,500 crore.

"The object of the issue is to augment the long-term resources of the corporation," HDFC Ltd said in a regulatory filing on Tuesday.

HDFC said it will use the proceeds from the issue for financing or refinancing the housing finance business requirements.

The bond issue opens on 17 November and closes on the same day.

HDFC, set for a merger with its subsidiary HDFC Bank, will offer a coupon at 7.70% per annum on the bonds.

The coupon rate will be paid on November 18 every year up to the redemption date.

The tenure of the NCDs is 3 years and will mature on 18 November 2025. The issue and redemption price is Rs 10 lakh each.

The debentures will be listed on BSE and NSE. HDFC said the debentures issued in terms of this Shelf Placement Memorandum will be listed within 4 days from the issue closing date of each series.

The shelf placement memorandum 'AA' series worth Rs 75,000 crore was approved by HDFC's board of directors on 1 November.