Key facts
- HDFC Bank intends to raise at least $500 million in dollar bonds.
- The issuance will leverage a subsidized hedging window provided by the central bank.
- The bonds will have a five-year tenor.
- Initial pricing guidance is set at 5-year U.S. Treasury yield plus 120 basis points.
- The bank could raise more than $500 million depending on market demand.
India's largest private lender, HDFC Bank, is preparing to tap the international debt market by issuing dollar bonds worth at least $500 million this week. The bank plans to utilize a subsidized hedging window offered by the Reserve Bank of India for overseas borrowings. This move follows reports that other state-run lenders, State Bank of India and Bank of Baroda, are also exploring similar fundraising avenues through this scheme.