Housing Development Finance Corporation Ltd (HDFC) is the first Indian issuer of masala bond which is looking to raise at least Rs 2,000 crore, with an option of raising Rs 1,000 crore more from the sale in case of oversubscription.

"HDFC is keen to diversify its borrowing profile by tapping global investors through this issue of rupee-denominated bonds. This milestone issuance, the first of its kind, should validate the attractiveness of the instrument and set a good benchmark", Chairman Deepak Parekh said in the release.

Here are 6 things to know about the HDFC Masala Bonds:

1. The company has appointed Axis Bank, Credit Suisse and Nomura to manage the sale.

2. The bonds will bear a fixed coupon and will have tenor of 3 years and 1 month.

3. The company plans to lists the notes on the London Stock Exchange. Pricing will rake place on or before July 15, 2016, subject to market conditions.

4. The bonds will not be registered under US securities Act and will not be offered or soled within the united states.

5. The corporation is the first Indian public issuer of Synthetic INR Notes. These are in nature of rupee denominated bonds as per RBI rules and guidelines.

6. Here the investors are directly exposed to exchange and currency rate risk.

Masala bond is a rupee denominated bond and will be offered to foreign investors who are interested in investment in India but without direct exposure. The settlement for the same will be made in US dollars as they are rupee denominated.

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