1 week ago
HDFC Bank Raises $1.75 Billion Through Overseas Bond Issue
HDFC Bank borrowed $1.75 billion from investors around the world.
It did this by selling bonds, which are promises to repay borrowed money with interest.
Some bonds must be repaid in three years, while others must be repaid in five years.
The interest rates are 5.16% and 5.4%.
Investors from Asia, the United States and Europe bought the bonds.
The bonds will be listed on two international exchanges in India.
The bank said it will use the money to support business growth.
The fundraising happened one day after the Reserve Bank of India approved a possible large investment in HDFC Bank by Life Insurance Corporation of India.
HDFC Bank raised $1.75 billion through overseas bonds to fund business growth.
The issue comprised $500 million in three-year notes and $1.25 billion in five-year notes.
The three-year notes carry a 5.16% coupon, while the five-year notes carry 5.4%.
The bonds will be listed on India International Exchange and NSE International Exchange.
The fundraising brings HDFC Bank’s dollar-bond issuance since June to $2.5 billion.
- Who
- HDFC Bank raised the funds through its GIFT City branch.
- What
- The bank issued $1.75 billion in overseas senior unsecured bonds.
- Where
- The bonds were issued through GIFT City and will be listed on India International Exchange and NSE International Exchange.
- When
- The issue was announced in a regulatory filing; the exact date is not stated.
- Why
- The funds will be used to support business growth.
Key facts
- Total raised
- $1.75 billion
- Three-year notes
- $500 million at a 5.16% coupon
- Five-year notes
- $1.25 billion at a 5.4% coupon
- Investors
- Investors from Asia, the United States and Europe participated.
- Listings
- India International Exchange and NSE International Exchange
- Dollar bonds since June
- HDFC Bank has raised $2.5 billion through dollar bonds since June.
- Related approval
- The Reserve Bank of India approved Life Insurance Corporation of India’s proposal to acquire up to a 9.99% stake in HDFC Bank one day earlier.
Sources
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