HDFC Bank is returning to the dollar bond market for the second time in two months, with plans to raise at least $1 billion through overseas debt issuance as Indian banks accelerate fundraising ahead of the Reserve Bank of India’s special foreign-exchange swap window closing on August 31. The lender plans to issue at least $500 million each through three-year and five-year bonds via its GIFT City branch, with final pricing expected by Friday. Bankers said the issue could exceed $1 billion depending on investor demand. If completed, the latest transaction would take HDFC Bank’s total proceeds from dollar bond issues to around $1.75 billion, among the highest raised by an Indian bank through such instruments. The fundraising comes after the RBI decided to close its discounted swap facility for hedging non-resident deposits earlier than initially planned. Indian banks have raised about $7.55 billion through dollar bonds since the concessional hedging facility was announced in June. ICICI Bank has also tapped US-based investors for recent dollar bond issues, while IDFC First Bank raised $600 million through its debut three-year dollar debt sale via private placement. The rush highlights growing demand among Indian lenders for overseas funding before the special swap window expires.
HDFC Bank Plans Fresh Dollar Bond Issue Before RBI Swap Window Closes
