HDFC Bank, India's largest private sector lender, raised $750 million through a senior unsecured dollar-denominated bond issue via its GIFT City IFSC Banking Unit, the bank announced. The five-year bonds carry a coupon rate of 5.067% per annum, with interest payments scheduled semi-annually starting December 24, 2026. The bonds will mature on June 24, 2031, with the allotment date set for June 24, 2026, according to livemint.com.
The bond issuance was structured to attract offshore investors, leveraging the GIFT City International Financial Services Centre (IFSC) framework that allows Indian banks to raise foreign currency funds efficiently. HDFC Bank plans to use the proceeds from this bond issue to support its banking activities. The semi-annual interest payments will be made on June 24 and December 24 each year, starting from December 24, 2026, as detailed in the bank's announcement on livemint.com.
This $750 million offshore bond issue highlights the growing trend of Indian banks tapping international markets for funding through IFSC units. Comparable deals in the sector have seen similar coupon rates and maturity periods, reflecting investor appetite for Indian banking debt. The move also underscores HDFC Bank's strategy to diversify its funding sources amid a competitive banking environment, as reported by livemint.com.
The bond allotment date is fixed for June 24, 2026, marking a key milestone in HDFC Bank's offshore funding strategy. The proceeds will be deployed to bolster the bank's lending and operational activities, reinforcing its position as a leading private sector lender in India, according to livemint.com.