HDFC Bank Ltd. said it had raised $300 million through its first ever sustainable finance bond issue. This is part of an overall raise of $750 million through Regulation S Bonds. While $300 million has been raised for a tenure of three years with a 95 basis points spread over the U.S. Treasury, another $450 million has been raised for a tenure of 5 years, with a spread of 108 basis points over the U.S. Treasury.
“These are the tightest credit spreads achieved by an Indian issuer for a three-year sustainable bond and five-year senior unsecured bond for a similar size of USD Reg S issuance,” the bank said in a statement.
“’The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, SMEs and affordable housing. We are strongly committed towards building a green and social portfolio even as we continue adhering to the Bank’s risk philosophy,” said Arup Rakshit, Group Head-Treasury, HDFC Bank. The bonds will be listed on India International Exchange (India INX) in GIFT IFSC.
