HDFC Bank Seeks $500 Million in 5-Year Dollar Bonds Under RBI Swap Scheme
Updated
Updated · Reuters · Jun 16
HDFC Bank Seeks $500 Million in 5-Year Dollar Bonds Under RBI Swap Scheme
2 articles · Updated · Reuters · Jun 16
Summary
$500 million is the minimum HDFC Bank aims to raise this week through a five-year dollar bond, with the size potentially increasing if investor demand is strong.
Initial price guidance is 120 basis points over the five-year U.S. Treasury yield, though one source said the final spread could tighten to below 100 basis points during book-building.
The issue uses the Reserve Bank of India's new hedging window, which offers eligible overseas borrowings a fixed 1.5% annual swap rate and lowers foreign-currency funding costs.
Proceeds will fund HDFC Bank's foreign branches and subsidiaries, support expansion of overseas operations and cover general corporate purposes.
Merchant bankers expect the RBI-backed route to draw $15 billion to $20 billion of inflows over the next six months, with SBI and Bank of Baroda also exploring similar fundraisings.