The board of mortgage lender Housing Development Finance Corporation (HDFC) has approved plans to raise an additional Rs 57,000 crore by issuing non-convertible debentures (NCDs) before its merger with HDFC Bank.

The company said this would be done in multiple parts in a release.

This is the second major fundraising event HDFC has announced in the past two months. On February 26, HDFC raised Rs 25,000 crore through bonds at a coupon rate of 7.97%. It was the country’s largest-ever bond sale.

The HDFC-HDFC Bank merger will take effect in June-July after obtaining the necessary approvals from various regulators. The merger was announced last April.

“The overall borrowing capacity of the company is increased from Rs 6 lakh crore to Rs 6.5 lakh crore, pending at any time, with proposals to approve corporate members by postal ballot,” the company said in a release.

Furthermore, it said the decision was taken because the company had outstanding borrowings of around Rs 5.70 lakh crore as of the date. The company would need to borrow further for its business purposes before the effective date of the merger.

On March 17, the company said its board would consider raising funds through NCD tranches totalling Rs 57,000 crore.

In April last year, HDFC said its board had approved the merger of its wholly-owned subsidiaries, HDFC Investments Limited and HDFC Holdings Limited, with HDFC Bank Limited. As part of the plan, HDFC will acquire a 41% stake in HDFC Bank through a transformational merger.