HDFC Bank To Raise $6 Billion In Debt Over Next One Year

Private Indian lender HDFC Bank Ltd. stated on Tuesday that it would be open to issuing 500 billion rupees ($6 billion) in debt over the coming year. At its board meeting on Saturday, when it is also scheduled to release earnings for the January-March quarter, the bank will talk about the cash raise.

On Tuesday, HDFC Bank announced that it will contemplate borrowing 500 billion rupees (about $6 billion) in debt during the upcoming year. The bank stated in an exchange filing that the anticipated fund raise will be accomplished through the issuance of perpetual debt instruments, such as Additional Tier-1 (AT-1) bonds, Tier-II capital bonds, and long-term bonds.

It stated that a private placement will be used for the capital raising. The planned fundraising takes place before the merger of HDFC Bank and Housing Development Finance Corp. Ltd., which is anticipated to be finished by the end of June.

HDFC Bank raised 50 billion rupees in December through the sale of 10-year Basel III-compliant Tier-II notes with a yield of 7.84%. It issued 30 billion rupees worth of Basel III-compliant AT-1 bonds in September of last year with a 7.84% coupon.