HDFC Bank: Big feat of HDFC Bank! Dunka collects $1.75 billion in the global market, breaking an 18-year record

by
  • HDFC Bank's Global Sting
  • 1.75 billion through senior unsecured bonds of HDFC Bank
  • This is the largest consolidation of foreign investment since 2008
  • These bonds have been issued in two phases for a period of 3 years and 5 years

HDFC Bank: HDFC Bank has announced that it has raised $1.75 billion, roughly Rs 17,000 crore, through senior unsecured bonds. This is the bank's largest overseas fund raising since the 2008 global financial crisis. In fact, many banks are entering the foreign bond market. The country's largest private sector bank said the bonds were issued in two phases (double tranche) through its Gift City branch. The first phase consisted of three-year bonds worth $500 million and the second phase consisted of five-year bonds worth $1.25 billion.

Paytm Bank News : Payments Bank Closed; So what happens to your Paytm Wallet and UPI? Know in detail

Interest will be paid every six months

HDFC Bank The three-year bond has a coupon of 5.159%, while the five-year bond has a coupon of 5.401% and interest will be paid every six months. Both the phases will be settled on 26th August. The three-year bonds will mature by August 26, 2029, while the five-year bonds will mature by August 26, 2031. The price guidance for three-year bonds is T+88 basis points (bps) and for five-year bonds T+100 bps. Recently, many private and public sector banks have entered the foreign loan market. This was done under the Reserve Bank of India's (RBI) concessional swap window for external commercial borrowing (ECB), which will continue till the end of this year.

Attention Investors! A golden opportunity to earn as much as 49% profit! Are you betting on these shares?

These banks receive funds from abroadis loaded

  • Recently, IDFC First Bank raised $500 million through foreign bonds, while Kotak Mahindra Bank also raised approximately $650 million in its first five-year bond issue.
  • ICICI Bank and State Bank of India (SBI) have also raised substantial funds through this route.
  • These bonds will be listed on India INX Exchange and National Stock Exchange (NSE). Moody's has given it a Baa3 credit rating, while S&P Global has given the bond a BBB rating.
  • The lender has raised funds through the 144A route. This means that no security is placed on the bank's issue.

Leave a Comment