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HDFC Bank has raised $300 million through its first ever sustainable finance bond issue. The fund raise is part of an overall raise of $750 million through Regulation S Bonds.
The lender has raised $300 million for three years with a 95 bps spread over US Treasury, and another $450 million for 5 years with a 108 bps spread over US Treasury.
“These are the tightest credit spreads achieved by an Indian issuer for a three-year sustainable bond and five-year senior unsecured bond for a similar size of USD Reg S issuance,” the bank said.
The proceeds of the sustainable finance bond will be utilised for funding green and social loans, and towards financing general banking activities.
‘’The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, SMEs and affordable housing. We are strongly committed towards building a green and social portfolio,” said Arup Rakshit, Group Head-Treasury, HDFC Bank.
The bonds will be listed on India International Exchange (India INX) in Gift IFSC. The paper was rated Baa3 (stable) by Moody’s and BBB- (stable) by S&P. The bank had mandated Barclays, BofA Securities, J.P. Morgan, MUFG and Standard Chartered Bank as joint global coordinators and joint lead managers.
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