HDFC Bank explores dollar bond issue, taps leading banks for support: Report

HDFC Bank, the country’s largest private-sector lender, has reportedly enlisted the support of major financial institutions for a potential dollar bond sale, according to information from two bankers on Monday. The bank is said to be considering the issuance of three-year sustainability dollar bonds along with five-year conventional notes.

The appointed joint book runners and lead managers for this endeavour include Barclays, Bank of America, J.P. Morgan, MUFG, and Standard Chartered. These institutions will play a key role in facilitating fixed-income investor update calls across Asia and Europe throughout the week.

HDFC Bank, known for its financial prudence, has yet to respond to inquiries seeking confirmation of this development.

Notably, HDFC Bank's Regulation-S notes are expected to receive a Baa3 rating from Moody's and a BBB– rating from S&P. The bank's last foray into the dollar bond market was in February 2023, where it successfully raised $750 million through three-year dollar-denominated bonds with a coupon rate of 5.686 per cent.

In a related move in the market, renewable energy firm Greenko Energy Holdings is actively exploring a dollar green bond sale through its subsidiary, Greenko Mauritius, focusing on a shorter-tenor issue.

Market observers will be keenly watching HDFC Bank's bond issuance, which comes at a time when financial institutions are navigating global market conditions to optimise their funding strategies.

(With Reuters inputs)