HDB Financial Services has announced plans to raise Rs 500 crore ($59.85 million) by reissuing bonds that are set to mature in September 2027. This move was disclosed by three bankers on Friday. 

The reissued bonds will carry an annual yield of 8.35%, making them an attractive investment option for institutional investors and banking institutions. HDB Financial Services has scheduled a bidding session for these bonds on Monday, inviting interested bankers and investors to participate. 

This bond reissue is part of HDB Financial Services' broader strategy to strengthen its financial position and support its lending operations. The raised funds will be utilized to expand the company's loan book, providing more financial services to its customers across India. 

Investors often view such bonds as a stable investment, given the company's solid track record and the attractive yield offered. The 8.35% yield is particularly notable in the current market environment, where interest rates have been relatively low. This reissue allows HDB Financial Services to tap into a pool of investors seeking higher returns compared to traditional fixed deposits and other conservative investment options.

By opting for a reissue of existing bonds, HDB Financial Services can leverage the already established terms and conditions, simplifying the issuance process. This approach also signals confidence in their financial stability and their ability to meet future obligations.