HDFC Bank has raised a total of $1.75 billion through a twin bond sale to overseas investors, the largest debt capital market fund raise from an Indian financial institution, as it aggressively collects dollars to support its foreign currency non resident (bank) FCNR (B) deposits.India’s largest private sector bank raised $500 million from the sale three-year bonds $1.25 billion from five-year securities on Thursday.
Both the bonds were priced at tighter spreads than the initial price guidance.The three year bond was priced at 88 basis points above the three year US treasury, tighter than the initial price guidance of 120 basis points while the five year bond was priced at 100 basis points above the similar maturity US treasury tighter than the 130 basis points initial guidance indicating strong demand from investors, people familiar with the details said.With the US three year treasury trading at around 4.28%, the three year bond is likely to be priced at around 5.16%.
Also, with the five year Us treasury trading around 4.39%, the five year HDFC security is likely to be priced at around 5.39%.“This is the largest bond sale by any Indian financial institution beating the $1.25 billion raised by State Bank of India (SBI) in 2019.
