HDFC Bank likely to raise Rs 15,000 cr via tier-2 bonds, largest this FY

Lenders return to debt market as yields soften and credit demand booms

HDFC Bank is likely to raise up to Rs 15,000 crore through the issue of Basel-III compliant tier-2 bonds on Thursday, making it the largest such debt issuance this financial year, sources told 'Business Standard'.

The planned bond issuance, which is of 10-year maturity, includes a base size of Rs 1,000 crore and a green-shoe option of Rs 14,000 crore, the sources said.

“HDFC Bank’s tier-2 bond sale is likely mapped as a fixed rate issue with coupon of 7.86 per cent annual,” a source said. The 10-year government bond yield was last at 7.28 per cent, down 17 basis