HDFC Bank raises $500 mn in overseas bond sale at 3% coupon
The USD 500-million unsecured senior bond issue, which saw 10-times demand or USD 5 billion, over the issue size, is part of HDFC Bank's USD 1-billion overseas bond sale (medium term note). The money was raised through its Bahrain branch over the last weekend, StanChart, one of the merchant bankers to the issue said.
At 3 per cent coupon makes it the lowest for the bank ever and also the cheapest this fiscal, StanChart said.
"HDFC Bank achieved the lowest ever coupon/YTM (yield- to-maturity) achieved for any domestic issuer and the tightest bank issuance spread in recent months, for a five-and- half-year issuance," Jujhar Singh, MD, capital markets at StanChart India, said.
"The final spread was tighter than fair value for a new five-year US dollar-bond issuance for SBI implied by the secondary trading levels (222 bps over US treasury now), which is a feat for a debut USD bond issuance," Singh said.
The fixed rate senior unsecured notes or Regulation S bonds (RegS bonds) raised in US dollar, carry a coupon of 3 per cent per annum payable half yearly and mature in 2018, he said, adding, "The pricing got tightened by 25 bps from the initial guidance and 5 bps from the final guidance to 230 bps over the US treasury as investors lapped the
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