HDFC Bank increases $750 mn in dollar bond sale

The country's biggest private lender HDFC Bank Announced that it has increased $750 million through a dollar bond sale.

“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.

HDFC Bank said it will be paying a coupon of 5.686 percent.  The USD-denominated senior unsecured instruments will have a three-year maturity, with settlement on 2 March 2023, and the maturity on 2 March 2026, according to an exchange filing.

The paper was rated Baa3 by Moody's Rating Services and BBB- by S&P. It will be listed on the India International Exchange, said HDFC Bank in the filing.

HDFC Bank’s dollar bond follows the Rs 25,000 crore bond issuance by parent Housing Development Finance Corporation (HDFC) last week.

HDFC, which is in the process of merging itself with the bank, offered to pay a coupon of 7.97% for the 10-year bonds. That compares with the benchmark bond, which is trading at around 7.36%.

HDFC Bank Ltd has reported a rise in net profit by 18.50 percent to Rs 12,259.50 crores in the quarter that ended December 2022. This is against a net profit of Rs 10,342.20 crore in the year-ago period.

The private lender reported robust growth in net interest income (NII). In the recently ended December 2022 quarter, HDFC Bank reported an NII of Rs 22,987.9 crore, around 24.60 percent higher than its NII of Rs18,443.50 crore in the corresponding quarter last fiscal.