According to a statement released by HDFC Bank, the country’s largest private lender launched its $1 billion additional tier-I (AT-1) bond issue in the overseas market on August 18 and was also able to close the final pricing at a level much lower than the initial guidance. The dollar-denominated, Basel III-compliant AT1 notes were priced at 3.70 percent, according to HDFC Bank, which is 42.5 basis points lower than the initial price guide.
Moody’s Rating Services of the renowned bond credit rating business, Moody’s Investors Services, has assigned the offering a provisional rating of Ba3. According to HDFC Bank, this is one of the tightest pricing achieved by any Asian bank with a Ba3 grade, as well as the largest US$ AT1 offering by any Indian bank.
Global investors reacted positively to the bank’s offering, which was more than three times oversubscribed once the final price guide was issued. According to a statement from HDFC Bank, the AT-1 notes would be listed on The India International Exchange (IFSC) Limited.
“We hope that the success of this issue will pave the way for other Indian companies seeking to raise AT1 bonds in international markets.” With lower caseloads and increasing vaccine coverage, we are certain that the Indian economy would pick up speed,” stated Mr. Ashish Parthasarthy, Treasurer of HDFC Bank. Meanwhile, following failures in HDFC Bank’s digital payment services last year, the Reserve Bank of India (RBI) eased limitations on the issuance of new credit cards.
HDFC Bank’s stock fell 0.13 percent to 1,512.90 per share on the BSE on Wednesday, August 18.