HDFC Bank accepts bids worth $750 mn for dollar bond issuances: Bankers

HDFC Bank has accepted bids worth $750 million for two dollar bond issuances - one maturing in three years and the other in five years, two bankers said on Wednesday.

The private sector lender has priced its three-year sustainability bond at a yield of 5.196% and accepted bids worth $300 million. It priced the five-year conventional notes at 5.180% and accepted bids worth $450 million.

The three-year notes are priced 95 basis points (bps) over three-year U.S. Treasury yields, while the five-year notes are 108 bps over U.S. yields, both lower than the initial guidance of 125 bps and 140 bps, respectively.

The proceeds from the sustainability tranche will be used in accordance with the Indian bank's sustainable finance framework, while the proceeds from the five-year notes will be used for funding and expansion of the bank's foreign branches and foreign subsidiaries as well as general corporate purposes.

The Regulation-S dollar notes will be rated Baa3 by Moody's and BBB- by S&P Ratings.

The notes will be issued by the bank's Gujarat International Finance Tech City branch.

Barclays, Bank of America, JP Morgan, MUFG and Standard Chartered are the joint global coordinators and lead managers.

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