India's HDFC Bank has raised $300 million through its first sustainable finance dollar-denominated bond issue, the bank announced in a release on Wednesday.
The country's largest private lender by market capitalization has set the yield on its three-year sustainability bond at 5.196%. This is 95 basis points (bps) above the three-year Treasury yield and well below the initial guidance of a 125 bps spread.
“Funds raised through sustainable finance bonds will be prioritized for financing electric vehicles, small and medium enterprises, and affordable housing,” said Arup Rakshit, group finance head, HDFC Bank.
The bank also raised an additional $450 million through five-year unsecured dollar senior notes with a coupon of 5.180%. The prices of these bonds were 108 basis points above the yield on the five-year U.S. Treasury, which was also lower than the initial guidance of 140 basis points.
Proceeds from the five-year notes will be used to finance and expand the bank's overseas branches and subsidiaries, as well as for general corporate purposes, the lender said.
Regulation S dollar bills are rated Baa3 by Moody's and BBB– by S&P Ratings.
The notes will be issued by the bank's Gujarat International Finance Techcity branch and listed on the India International Exchange.
Enter every day for a chance to win prizes iPhone 15 and smartwatch
Answer today's question below!
play now
Barclays, Bank of America, JPMorgan, MUFG and Standard Chartered are joint global coordinators and lead bookrunners.
Here is a comprehensive three-minute summary of what Finance Minister Nirmala Sitharaman said in her budget speech: Click to download!
This article has been published from a news agency feed without modifications to the text.
