Business Daily from THE HINDU group of publications
Friday, Oct 13, 2006
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Business Daily from THE HINDU group of publications Friday, Oct 13, 2006 ePaper |
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Money & Banking
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Private Banks
Our Bureau
New Delhi , Oct. 12 International Finance Corporation (IFC), the private sector arm of the World Bank Group, on Thursday announced that it would invest $100 million in Upper Tier-II subordinated bonds to be issued by HDFC Bank Ltd. Stating this as the first domestic foreign currency denominated upper tier-II transaction in the banking industry, Mr Aditya Puri, Managing Director, HDFC Bank, told a press conference that these bonds would have a final maturity of 15 years and that the interest cost would be LIBOR plus 122.5 basis points. "This is a good transaction for us, as it reduces the need for equity and at the same time allows us to grow," he said. IFC's investment would help HDFC Bank augment its capital base primarily to support its growing asset business and also increase the bank's long-term resources. "This is an innovative transaction in foreign currency and fits with our mission very well. It reflects our larger goal of developing and strengthening the financial sector in emerging markets," said Mr Lars Thunell, Executive Vice-President of IFC, who is visiting India. HDFC Bank's capital adequacy ratio as on June 30, 2006, stood at 11.7 per cent. IFC's exposure to India as on end-June 2006 stood at about $1.4 billion. Its sectoral exposure to infrastructure and agriculture stood at 17 per cent and 4 per cent respectively.
More Stories on : Private Banks | Financial Institutions | Corporate Bonds | HDFC Bank Ltd
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