Mortgage lender HDFC today raised up to Rs 500 crore through issue of debentures for general corporate requirements.

Debentures is a type of debt instrument that is not secured by physical assets or collateral.

According to sources, the debentures issue closed for Rs 300 crore with a green-shoe option of Rs 200 crore.

Investors were being offered an annualised interest of 9.18 per cent through the debentures that had a maturity of five years.

The funds were raised to meet general corporate needs, sources said.

Private sector lender Axis Bank was the sole arranger of the issue.

Last month, HDFC had raised Rs 500 crore through non-convertible debentures (NCDs), which are loan-linked bonds that cannot be converted into stock and usually offer higher interest rate than convertible debentures.

The funds were raised through five-year bonds at an annualised rate of 9.05 per cent.

HDFC is the country's largest home loan provider with cumulative disbursements of over Rs 3.74 lakh crore as at March 31, 2012.