HDFC Bank completes pricing of $1 bln Basel III AT-1 bonds

The private bank said that it has fixed the coupon rate of its $1 billion additional tier- I (AT-1) bonds at 3.70% per annum.

The bank said that the US dollar-denominated, direct, subordinated, unsecured, Basel III compliant, additional tier-1 (AT-1) notes are rated Ba3 by Moody's Rating Services.

The notes will be listed on the India International Exchange (IFSC), it added.

The Additional Tier 1 Notes have not been and will not be, offered or sold to any person resident in India, it said.

In April 2021, the board of directors of HDFC Bank had approved issuance of perpetual debt instruments (part of additional tier-I capital), tier-II capital bonds and long term bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore in the period of next twelve months through private placement mode.

Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.

HDFC Bank is one of India's leading private banks. As of 30 June 2021, the bank's distribution network was at 5,653 branches and 16,291 ATMs /cash deposit & withdrawal machines (CDMs) across 2,917 cities /towns.

The private sector bank reported 16.08% rise in standalone net profit to Rs 7,729.64 crore on 6.73% increase in total income to Rs 36,771.47 crore in Q1 FY22 over Q1 FY21.

The scrip shed 0.13% to end at Rs 1512.90 on Wednesday. The domestic equity market is shut today, 19 August 2021, on account of Muharram.

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