HDFC Bank gets $500 million in funding from Japan’s MUFG Bank

16 Jan 2024 , 12:36 PM

HDFC Bank has raised $500 million from Japan’s largest lender MUFG Bank, as it reports an increase in its liabilities after the acquisition of parent HDFC last year.

The company’s dollar loan from MUFG was financed via the Japanese bank’s Gift City branch and was given at 110 basis points higher than the three-year secured overnight financing rate (SOFR), stated the people familiar with the matter.

As per the sources, the said loan was priced earlier and was a bilateral deal. The loan reflects the continuous demand for funds from India’s largest lender by market capitalization. Further, it also reflects on the appetite for funding Indian companies by Japanese lenders like MUFG.

At around 11.19 AM, HDFC Bank was trading marginally down at Rs 1,671.50 per piece, against the previous close of Rs 1,672.80 on NSE. The counter touched an intraday high and low of Rs 1,680 and Rs 1,658.10 respectively.

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