Cholamandalam Investment and Finance Co., one of India’s biggest shadow lenders, plans to raise as much as 20 billion rupees ($209 million) through the issuance of perpetual bonds, according to people familiar with the matter. This would mark the largest such debt sale by a private financier in the country. Perpetual bonds typically don’t have a maturity date and in the case of Cholamandalam’s notes they are callable by the issuer after 10 years, the people said, asking not to be identified as the terms are not public.

The proposed issuance underscores growing appetite among Indian non-bank financial companies for long-term funding tools. Perpetual bonds offer lenders flexibility to manage capital while attracting yield-seeking investors.

Cholamandalam, based in Chennai, has been expanding its retail and commercial lending operations. The bond sale comes as shadow lenders in India seek to diversify funding sources amid tighter credit conditions.

The move follows similar perpetual bond issuances by other major Indian financial institutions over the past year.