The proposed fund raise would be by issuing perpetual debt instruments, or Additional Tier-1 (AT-1) bonds, Tier-II capital bonds and long-term bonds, the bank said in an exchange filing
Bengaluru, NFAPost: Indian private lender HDFC Bank Ltd said it would consider raising debt of Rs 500 billion (about $6 billion) over the next one year.
The bank will discuss the fund raise at its board meeting on Saturday, when it is also due to report earnings for the January-March quarter.
The proposed fund raise would be by issuing perpetual debt instruments, or Additional Tier-1 (AT-1) bonds, Tier-II capital bonds and long-term bonds, the bank said in an exchange filing.
The fund raising will be on a private placement basis, it said.
The proposed fundraising comes ahead of HDFC Bank’s merger with Housing Development Finance Corp Ltd, which is likely to be completed by the end of June.
In December, HDFC Bank had raised Rs 50 billion via 10-year Basel III-compliant, Tier-II bonds at a coupon of 7.84%.
Last September, it issued Basel III-compliant AT-1 bonds worth Rs 30 billion at a coupon of 7.84%. ($1 = 82.0950 Indian rupees)
