HDFC Bank has raised $1.75 billion through a twin-tranche offshore bond issue, stepping up its foreign-currency fundraising as Indian lenders race to mobilize funds ahead of the Reserve Bank of India\u2019s (RBI) early closure of the foreign currency non-resident bank or FCNR(B) deposits.<\/p>\n
India\u2019s largest private sector bank, through its GIFT City branch, raised $500 million through three-year senior unsecured notes and $1.25 billion through five-year notes, according to a late Thursday exchange filing.<\/p>\n
The three-year bonds carry a coupon of 5.159%, while the five-year notes carry a coupon of 5.401%. Both issuances are scheduled to settle on 26 August.<\/p>\n
The fundraising is likely to support HDFC Bank\u2019s mobilization of foreign-currency deposits from non-resident Indians under the FCNR(B) scheme.<\/p>\n
The bank had earlier raised around $750 million through offshore borrowing in July and indicated that it planned to raise more funds to support its FCNR(B) deposit mobilization.<\/p>\n
HDFC Bank\u2019s latest issue comprises senior unsecured fixed-rate notes in the 144A and Regulation S formats. The notes are rated Baa3 by Moody\u2019s and BBB by S&P at the issuer level and are listed on India INX and NSE-IX.<\/p>\n
HDFC Bank\u2019s latest issue comes days after RBI advanced the closure of its special FCNR(B) deposit window to 31 August, bringing forward a deadline that had originally been set for 30 September.<\/p>\n
The move has prompted banks to accelerate both foreign-currency fundraising and efforts to attract deposits from NRIs before the window closes.<\/p>\n
RBI\u2019s measures were introduced in June to encourage foreign-currency inflows into the country. Under the arrangement, banks could raise FCNR(B) deposits from NRIs and use RBI\u2019s swap facility to manage the associated foreign-exchange risk.<\/p>\n
The central bank\u2019s decision to bring forward the closure has compressed the time available to banks to raise and deploy these funds.<\/p>\n
FCNR(B) is a fixed-term deposit that NRIs can maintain with authorized banks in foreign currencies. Both the principal and interest can be repatriated, insulating depositors from rupee-exchange-rate risk.<\/p>\n
Subhana Shaikh is a business journalist at Mint, where she covers the Reserve Bank of India, monetary policy, and India\u2019s bond markets. She has seven years of experience in reporting on financial markets, with a focus on banking and the broader financial system.<br><br>She began her career after completing her postgraduate diploma at the Indian Institute of Journalism and New Media, Bengaluru. She then spent five years at Informist Media, a news wire agency, where she closely tracked bond markets and the BFSI sector, developing a strong foundation in market reporting. She later moved to NDTV Profit, where she expanded her coverage across a wide range of business and economic stories.<br><br>At Mint, Subhana focuses on explaining central bank decisions, bond market movements, and banking trends for her readers. Her reporting combines on-ground inputs with careful analysis to help audiences understand complex financial developments.<br><br>Based in Mumbai, she is interested in exploring stories across the business landscape. Outside of work, she enjoys reading and spending time with her three cats.<\/p>\n
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