HDFC Bank Raises $1.75 Billion Through Overseas Bond Sale — Largest By Indian Bank Since 2008 Crisis

HDFC Bank fundraise comprises two tranches: $500 million of three-year bonds and $1.25 billion of five-year bonds.

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HDFC Bank bonds are expected to carry Baa3 and BBB ratings from Moody's and S&P, respectively.
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HDFC Bank announced that it has raised $1.75 billion through senior unsecured bonds issued by its GIFT City branch, marking the largest overseas fundraise by an Indian bank since the global financial crisis.

The fundraise comprises two tranches: $500 million of three-year bonds and $1.25 billion of five-year bonds. The three-year notes carry a coupon of 5.159%, while the five-year notes offer a coupon of 5.401%, with interest payable semi-annually, HDFC Bank said in a regulatory filing.

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The settlement date for both the tranches is August 26, 2026. The three-year bonds will mature on August 26, 2029, while the five-year bonds will mature on August 26, 2031.

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The notes will be listed on India INX, or India International Exchange (IFSC), and NSE International Exchange (NSE-IX). 

The bonds have been issued in the 144A/Regulation S format and are senior unsecured notes. They will be redeemed at maturity.

HDFC Bank has an issuer rating of Baa3 with a stable outlook from Moody's and BBB with a stable outlook from S&P Global Ratings. The bonds are expected to carry Baa3 and BBB ratings from Moody's and S&P, respectively.

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On Thursday, HDFC Bank share price ended 0.88% higher at Rs 726.50 apiece on the BSE.

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