HDFC Bank on Wednesday said it raised Rs 7,425 crore through non-convertible bonds (NCDs). Proceeds of the issue will be used to fund infrastructure and affordable housing projects.

In a regulatory filing, the country’s largest private sector bank said it has issued and allotted on a private placement basis 7.71 per cent, unsecured, redeemable, long-term, fully paid-up, non-convertible bonds in the nature of debentures.

According to the lender, as many as 7,42,500 bonds of face value Rs 1,00,000 each were issued to raise Rs 7,425 crore for funding infrastructure and affordable housing projects.

Shares of the lender closed with marginal gains at the stock exchanges on Wednesday. It settled at Rs 1,656.20 on the BSE, a rise of 0.19 per cent over the previous finish.

The fund raising via bonds comes at a time banks are witnessing a strong demand for credit despite elevated interest rates.

Recent data has shown credit growth at over 20 per cent. Recently, the RBI left the repo rate unchanged at 6.50 per cent for the fifth consecutive time. Earlier it had raised it by 250 basis points between May 2022-February 2023.

Last month, SBI had raised Rs 10,000 crore through Tier II bonds to fund its business growth. Bank of Baroda is also reportedly planning to raise up to Rs 2,500 crore through bonds.