HDFC Bank Raises $1.75 Bn In Biggest Overseas Bond Sale Since 2008

HDFC Bank has raised $1.75 billion through senior unsecured bonds, marking its largest overseas fundraise since the 2008 global financial crisis. The private lender announced the development on August 20.

The issuance was carried out through the bank's GIFT City branch in two tranches. The first tranche comprised $500 million of three-year bonds, while the second consisted of $1.25 billion of five-year bonds.

The three-year notes carry a coupon of 5.159%, and the five-year notes offer 5.401%, with interest to be paid semi-annually. Both tranches will be settled on August 26. The three-year bonds will mature on August 26, 2029, and the five-year bonds will mature on August 26, 2031.

Price guidance was set at T+88 basis points for the three-year bond and T+100 basis points for the five-year bond.

Part Of A Wider Trend

Several private and public sector banks have approached the overseas debt market in recent weeks, ahead of the Reserve Bank of India's concessional swap window for external commercial borrowings, which remains open till the end of the year.

IDFC First Bank recently raised $500 million through overseas bonds. Kotak Mahindra Bank raised close to $650 million in its first-ever issuance of five-year bonds. ICICI Bank and State Bank of India have also raised substantial amounts through the same route.

HDFC Bank's bonds will be listed on the India INX Exchange and the National Stock Exchange. Moody's has assigned the bonds a rating of Baa3, while S&P Global has rated them BBB.

The bank raised the funds through the 144A route, meaning no security has been created against the issue.