A transversely-coupled distributed feedback laser diode, which can be processed without overgrowth, is disclosed. The laser is made from an epitaxial heterostructure including a core layer located between two cladding layers, a cap layer, and at least one Al-rich layer. The lateral waveguide is formed by selective oxidation of the Al-rich layer. A surface corrugated grating is formed above the waveguide. The heteroepitaxial structure is designed so that the core layer is placed in close proximity to the top of the laser structure to provide a required overlap between the light and the grating. In order to avoid inadmissible optical losses, there is no metallization above the waveguide. Instead, the metal contacts are offset at some distance, so that the current has to spread in the cap layer before vertical injection into the core layer.