HDFC Bank shares rise after $1.75 billion bond issuance

HDFC Bank shares rose approximately 1 percent following the successful issuance of $1.75 billion in offshore bonds through its GIFT City branch. The fundraising effort consisted of a dual-tranche issuance: $500 million in three-year senior unsecured notes with a coupon rate of 5.159 percent, and $1.25 billion in five-year notes with a coupon rate of 5.401 percent. Settlement for these bonds is scheduled for August 26.

The capital infusion is intended to mobilize foreign currency deposits from non-resident Indians under the Foreign Currency Non-Resident Bank (FCNR(B)) scheme, particularly as the Reserve Bank of India has advanced the closure of this special deposit window to August 31.

Credit rating agencies have provided assessments for the notes. S&P Global Ratings assigned a ‘BBB’ long-term issue rating, while Moody’s Investors Service assigned a Baa3 rating with a stable outlook. Both agencies noted that these ratings are subject to periodic review.