HDFC Bank accepts $750 million in bids for dollar bond offerings

HDFC Bank has approved bids totaling $750 million for two dollar bond issuances, with one maturing in three years and the other in five years. two banking sources told Reuters on Wednesday.

The private sector lender has set the yield for its three-year sustainability bond at 5.196 per cent and accepted bids totalling $300 million. Similarly, it priced the five-year conventional notes at 5.180 per cent and accepted bids worth $450 million.

The three-year notes are priced at 95 basis points (bps) over three-year US Treasury yields, while the five-year notes are set at 108 bps over US yields. These rates are lower than the initially guided 125 bps and 140 bps, respectively.

Proceeds from the sustainability tranche will align with HDFC Bank's sustainable finance framework, while funds from the five-year notes will support the bank's foreign branch and foreign subsidiary expansion, as well as general corporate purposes.

The Regulation-S dollar notes are expected to receive a Baa3 rating from Moody's and BBB– from S&P Ratings. These notes will be issued through the bank's Gujarat International Finance Tech City branch.

Barclays, Bank of America, JP Morgan, MUFG, and Standard Chartered are serving as joint global coordinators and lead managers for the bond offerings.

(With Reuters Inputs)