According to two bankers on Wednesday, HDFC Bank has accepted bids totaling $750 million for the issue of two dollar bonds, one with a three-year maturity and the other with a five-year one.
The private lender has taken $300 million in bids for its three-year sustainability bond, which is priced at a yield of 5.196%. The five-year conventional notes were priced at 5.180%, and bids totaling $450 million were received.
Both the three-year notes and the five-year notes are priced below the earlier guidance of 125 bps and 140 bps, respectively, with the three-year notes priced 95 basis points (bps) over three-year U.S. Treasury yields and the five-year notes priced 108 bps over U.S. yields.
While the proceeds from the five-year notes will be used for general corporate purposes and to fund the bank's foreign subsidiaries and branches, the proceeds from the sustainability tranche will be allocated in line with the Indian bank's sustainable finance framework.
Moody's and S&P Ratings will respectively assign the Regulation-S dollar notes a Baa3 and BBB- rating.
The bank's Gujarat International Finance Tech City office will issue the notes.
As lead managers and joint worldwide coordinators, Barclays, Bank of America, JP Morgan, MUFG, and Standard Chartered are involved.
