Wed, 27 Feb 2013 18:45:00 GMT | By PTI

HDFC Bank to raise $500 m from overseas markets

More and more domestic companies are raising funds from Asia as investors in the region have high regard for Indian debt, say merchant banking sources


HDFC Bank to raise $500 m from overseas markets (© Reuters)

Mumbai: Country’s second largest private lender HDFC Bank today hit the foreign debt markets with a $500-million bond issue, according to merchant banking sources. “HDFC Bank is raising $500 million through a five-year US dollar denominated bonds (senior unsecured notes). The final pricing guidance has been fixed at 235 basis points (2.35 per cent) above the US treasury,” a merchant banking source, who did not wish to be identified, told PTI here.

The bank had on Monday launched a road-show in Hong Kong, Singapore and London for this, the source added. Meanwhile, global rating agency Standard & Poor’s said it has given a BBB— rating to the HDFC Bank senior unsecured notes. It can be noted that 2013 saw many large corporates like Reliance Industries, ICICI Bank, Exim Bank, PowerGrid, Tata Communications, raising foreign debt.

While on January 7 this year, Exim Bank had raised $750 million in a European bond sale at the cheaper ever rate of 4 per cent for a 10-year money, which got an over-subscription of 8.5 times, within a week, the state-run distribution utility PowerGrid had raised $500 million at 3.87 per cent for a 10-year US dollar issue which received an over-subscription of 19 times.

In the same week, the largest private lender ICICI Bank mopped $225 million from a seven-year Singapore bond sale programme on January 10. The last week of January saw Reliance Industries hitting the market with $800 million perpetual bond issue, the first by a domestic company.

(Continued)
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