HDFC Bank, the country’s largest private sector lender, stated on Thursday that it has raised USD 750 million through a dollar bond offering.
HDFC Bank, the country’s largest private sector lender, stated on Thursday that it has raised USD 750 million through a dollar bond offering.
According to an exchange filing, the bank will pay a rate of 5.686 percent on the three-year bonds.
The paper, rated Baa3 by Moody’s and Bbb by S&P, would be offered on the India International Exchange, the company said.
The senior unsecured securities denominated in USD will be repaid in March 2026.
“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.
On Thursday, HDFC Bank finished 0.69 percent down at Rs 1,603.35 a share on the BSE, compared to a 0.23 percent drop in the benchmark.
HDFC Bank stated that it will pay a 5.686 percent rate. According to an exchange filing, the USD-denominated senior unsecured securities will have a three-year term, with settlement on March 2, 2023, and maturity on March 2, 2026.
Moody’s Rating Services assigned the paper a Baa3 rating while S&P assigned it a BBB- rating. According to HDFC Bank’s registration, it would be listed on the India International Exchange.
HDFC Bank’s dollar bond follows the parent Housing Development Finance Corporation’s (HDFC) 25,000 crore bond offering last week.
HDFC, which is in the process of merging with the bank, gave a 7.97% rate on the 10-year notes. In comparison, the benchmark bond is now selling at roughly 7.36%.
HDFC Bank Limited reported an 18.50% increase in net profit to 12,259.50 crore in the quarter ending December 2022. This compares to a net profit of 10,342.20 crore the previous year.
The private lender reported a significant increase in net interest income (NII). HDFC Bank recorded NII of 22,987.9 crore in the just concluded December 2022 quarter, which is around 24.60 percent more than the similar quarter previous fiscal’s NII of 18,443.50 crore.
On Thursday, HDFC Bank finished 0.69 percent down at 1,603.35 per share on the BSE, compared to a 0.23 percent drop in the benchmark.
