HDFC Bank returns to dollar bonds with $1.75 billion plan
What Happened
HDFC Bank has returned to the dollar bond market with a proposed $1.75 billion issue split between three-year and five-year notes. The bank is using the Reserve Bank of India’s concessional swap window, which lets lenders convert foreign borrowing into rupees on cheaper terms than usual.
Financial Impact
The deal signals that Indian banks are still willing to borrow offshore when the pricing works. For HDFC Bank, the final size will depend on how tightly it can price the bonds against US Treasuries; the tighter the spread, the more it can raise on acceptable terms.
Counterpoints
The bank has only taken ratings for the issue so far, so the size and pricing are still subject to market demand.
Its move comes amid a wider rush by Indian banks to raise more than $3 billion in dollar bonds over the past 10 days, which suggests the window may be busy rather than permanently open.