HDFC Bank raises $750mn in dollar bond sale

“HDFC Bank Limited acting through GIFT City IFSC Banking Unit has completed the issue of 750 Million US$ Senior Unsecured Bonds,” said the bank in its regulatory filing.

HDFC Bank said it will be paying a coupon of 5.686 per cent.  The USD denominated senior unsecured instruments will have a three year maturity, with settlement on 2 March 2023, and the maturity on 2 March 2026, according to an exchange filing.

The paper, rated Baa3 by Moody’s Rating Services and BBB- by S&P. It will be listed on the India International Exchange, said HDFC Bank in the filing.

HDFC Bank’s dollar bond follows the ₹25,000 crore bond issuance by parent Housing Development Finance Corporation (HDFC) last week.

HDFC, which is in the process of merging itself with the bank, offered to pay a coupon of 7.97% for the 10-year bonds. That compares with the benchmark bond, which is trading at around 7.36%.

HDFC Bank Ltd has reported rise in net profit by 18.50 per cent to ₹12,259.50 crore in the quarter ended December 2022. This is against a net profit of ₹10,342.20 crore in the year ago period.