Debt financing
HDFC Bank raises $750-M in offshore bonds
Mumbai-based HDFC Bank has raised USD 750 million through a five-year offshore bond issuance, marking the first transaction to avail of the Reserve Bank of India's (RBI) special swap facility. The bonds were issued through the bank's International Financial Services Centre Banking Unit located in GIFT City.The issuance was priced at 90 basis points above the five-year US Treasury, at a final coupon rate of 5.067%. The bank recorded an order book of USD 2.1 Billion, attracting participation from about 90 investors. Global asset managers accounted for 54% of the allocation, while global banks and financial institutions secured 28%. Investors from Asia dominated the issue with a 68% share, followed by investors from Europe, the Middle East, and Africa.The RBI’s mechanism allows banks and public sector enterprises to sell dollars to the RBI and agree to buy them back at a fixed rate at the end of the loan tenure, effectively removing the requirement for these entities to hedge future dollar liabilities.
Between Feb 1999 and May 2024, HDFC Bank had attracted about $ 533 M from JP Morgan and IFC.For FY25, HDFC Bank had reported about INR 300,517 Cr in Operating Income and about INR 67,347 Cr in PAT.
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