Standard & Poors has given a BBB-rating to HDFC Bank senior unsecured notes. According to investment bankers, Bharti Aritel could also raise $500 million to $1 billion through a similar issuance soon.
State Bank of India (SBI) is also looking to raise $500 million to $1 billion through this route before March end, along with its peer Bank of India, which could raise $500 million.
In 2013, at least six companies had raised funds from overseas market at a cheaper price than previous years as demand for Indian bonds was very healthy, which have lured other companies to consider this route.
Exim Bank mopped up $750 million through 10-year dollar bond at 4.119% and attracted subscriptions worth $6.4 billion. Billionaire Mukesh Ambanis Reliance Industries raised $800 million through overseas perpetual bonds, or those without a set maturity, at a coupon of 5.875%. The Netherlands unit of Tata Communications raised SGD250 million through a 3-year Singapore dollar-denominated bond. ICICI Bank also raised SGD225 million through a 7-year Singapore dollar-denominated bond in January a fixed coupon of 3.65%.