Buoyed by firm demand, HDFC Bank mulls fresh Rs 5,000-cr Tier 2 bond sale

The quantum raised through Tier 2 bonds is set to rise much further in coming days as Axis Bank is slated to sell Rs 12,000 crore of such instruments on Friday

After seeing firm demand for a Tier 2 bond sale worth Rs 15,000 crore a week ago, HDFC Bank is likely to come up with another sale of such instruments worth up to Rs 5,000 crore as some investors were unable to get their hands on the earlier issuance, sources said.

Last week’s sale of 10-year Tier 2 bonds by HDFC Bank, which was the single-largest such sale by any lender so far this financial year, saw a coupon of 7.86 per cent being set for the securities. The cut-off was deemed to be an aggressive one by treasury officials, who