Prime Highlights
- HDFC Bank raised $1.75 billion through bonds from its GIFT City branch.
- The fundraise includes $500 million in three-year bonds and $1.25 billion in five-year bonds.
Key Facts
- HDFC Bank is one of India’s largest private sector banks.
- The bonds are senior unsecured notes and carry expected Baa3 and BBB ratings from Moody’s and S&P.
Background
HDFC Bank has raised $1.75 billion through the issuance of senior unsecured bonds by its GIFT City branch, making it one of the biggest offshore fundraising exercises by an Indian bank since the global financial crisis.
The private sector lender completed the bond issue in the third week of August. The fundraising includes two tranches, with $500 million raised through three-year bonds and $1.25 billion through five-year bonds.
The three-year bonds carry a coupon rate of 5.159%, while the five-year bonds offer a 5.401% coupon. The bank will pay interest on both bonds every six months.
The bonds will settle in the last week of August. The three-year notes will mature in August 2029, while the five-year notes will mature in August 2031.
HDFC Bank issued the bonds under the 144A and Regulation S formats. The notes are senior unsecured bonds, which means the bank has not pledged its assets as security against them.
Moody’s has given HDFC Bank a Baa3 issuer rating with a stable outlook, while S&P has assigned a BBB rating with a stable outlook. The bonds are expected to receive the same ratings from the two agencies.
The notes will be listed on India International Exchange (India INX) and NSE International Exchange (NSE-IX). HDFC Bank said the bonds will be redeemed when they reach maturity.
The bank also confirmed that the notes will not be offered or sold to people residing in India.