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HDFC Bank raises $1 bn via foreign bonds

HDFC Bank on Thursday said it has raised $1 billion through overseas bonds.

The dollar denominated, Basel III compliant AT1 notes were priced at 3.70%, 42.5 bps (basis points) lower than the initial price guidance. This is one of the tightest pricing achieved by any bank from Asia with Ba3 rating, the bank said.

“The bank was able to successfully price its $1 billion issuance of Additional Tier 1 (AT1) notes in the overseas markets on August 18,” HDFC Bank said in a statement.

“This is the largest U.S. Dollar AT1 offering by any bank from India,” the bank said. “This will shore up HDFC Bank’s already strong tier I capital base. The offering was well received by global investors and was oversubscribed by over three times after the final price guidance was released,” it said.

“We believe that this successful issuance will set the road for other Indian players looking to raise AT1 bonds in the overseas markets. We are confident that the recovery in the Indian economy will pick up pace, with falling caseloads and increased vaccination coverage,” said Ashish Parthasarthy, treasurer, HDFC Bank.

The said AT1 notes will be listed on The India International Exchange (IFSC) Ltd.


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Printable version | Oct 20, 2021 3:49:29 AM | https://www.thehindu.com/business/hdfc-bank-raises-1-bn-via-foreign-bonds/article36006309.ece

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