HDFC Bank taps overseas markets for $1.75bn fundraising

HDFC Bank has completed a $1.75 billion senior unsecured bond issuance through its GIFT City Branch, according to a regulatory filing by the lender. The capital raise will be used to fund the bank's ongoing business growth initiatives.

The fundraising was structured in two separate tranches. The first comprised $500 million in three-year notes bearing a coupon rate of 5.159 per cent, while the second tranche consisted of $1.25 billion in five-year bonds carrying a coupon rate of 5.4 per cent.

Both bond issuances will be listed on the India International Exchange (IFSC) Limited and the NSE International Exchange, providing liquidity on domestic platforms. The move reflects HDFC Bank's strategy to diversify its funding sources through international capital markets while maintaining listings on Indian bourses.

The offshore bond issuance comes as private sector banks in India continue to tap global markets for cost-effective funding to support credit growth and business expansion in a competitive lending environment.