HDFC Bank's $1-billion global AT-1 bond issue priced at 3.7%

HDFC Bank's maiden Additional Tier-1 (AT-1) capital bonds issue worth $1 billion has been tightly priced at 3.7 per cent compared to initial indicative yield of 4.12 per cent.

Market sources said the response was strong with demand in the region of $4 billion-$4.5 billion. Prominent investors in the offering include GIC, Fidelity.

Bankers who managed the issue were international players like Bank of America, Barclays and Standard Chartered. The road shows for bonds opened on Monday and covered 125 investors.

Rating agency Moody's has assigned “Ba3” rating to HDFC Bank's AT-1 capital bonds.

The Ba3 rating is three notches