Reliance Home Finance Ltd, a unit of Anil Ambani-controlled Reliance Capital Ltd, on Tuesday said it will raise up to Rs3,500 crore by selling non-convertible debentures (NCDs).

The secured NCDs and unsecured NCDs will be issued at a face value of Rs1,000 each. The base issue size is Rs1,000 crore with an option to retain oversubscription up to Rs3,500 crore. The unsecured NCDs will be in the nature of subordinated debt and will be eligible for inclusion as upper tier II Capital, it said.

The issue, the first such from Reliance Home Finance, will open on 22 December and close on 6 January. Proceeds will be utilized for lending, financing, repayment of loans and general corporate purposes.

The coupon rate for secured NCDs will vary between 8.7% and 9.15% and for unsecured NCDs from 9.25% to 9.4%. The tenure will be of three years, five years and 10 years for secured NCDs and 15 years for unsecured NCDs with a call option after 10 years.

The NCDs will be issued in one or more tranches up to the shelf limit, the statement added. They will be listed on BSE Ltd (BSE) and the National Stock Exchange of India Ltd (NSE).