HDFC Bank mulls $750 million fund raise through dollar bonds

24 Feb 2023 , 11:28 AM

According to sources, HDFC Bank, India’s largest lender by market capitalization, is in the process of raising $750 million through dollar bonds to lend to local corporations seeking opportunities overseas. The bonds have a maturity period of three years.

The closing price direction was set at T3+125 basis points (5.686%), surpassing the initial forecast of T3+155 bps, indicating a positive outcome. For context, one basis point equates to 0.01%. Currently, the three-year US Treasury bill is generating a yield of 4.43%.

Six global banks, including HSBC, JPMorgan, Citibank, and Standard Chartered Bank, have been mandated by HDFC Bank. 

Moody’s Investors has assigned a (P)Baa3 long-term foreign currency senior unsecured medium-term note rating to the issue, which is part of HDFC Bank’s $3 billion MTN programme at its Gujarat International Finance-Tec (GIFT) City Branch.

HDFC Bank is raising funds under US Securities and Exchange Commission (SEC) rules that allow companies to raise funds through the sale of dollar bonds without registering the offering with the SEC.

For feedback and suggestions, write to us at [e-mail]