February 29, 2024

HDFC Bank raises $300 million via maiden sustainable finance bond issue

India’s HDFC Bank has raised $300 million through its debut sustainable finance dollar-denominated bond issue, the lender said in a release on Wednesday.

The country’s biggest private lender by market capitalisation priced its three-year sustainability bond at a yield of 5.196%. This is 95 basis points (bps) over the three-year U.S. Treasury yield, sharply lower than the initial guidance of a 125-bps spread.

“The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, small and medium enterprises and affordable housing,” said Arup Rakshit, group head-treasury at HDFC Bank.

The bank has also raised another $450 million via senior unsecured five-year dollar bonds, at a coupon of 5.180%. These notes were priced 108 bps over the five-year U.S. yield, also lower than the initial guidance of 140 bps.

The proceeds from the five-year notes will be used for funding and expansion of the bank’s foreign branches and foreign subsidiaries as well as for general corporate purposes, the lender said.

The Regulation-S dollar notes will be rated Baa3 by Moody’s and BBB– by S&P Ratings.

The notes will be issued by the bank’s Gujarat International Finance Tech City branch and will be listed on the India International Exchange.

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This story has been published from a wire agency feed without modifications to the text.

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