HDFC Bank shares edge higher after $1.75 billion dollar bond raise
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HDFC Bank, the country’s largest private sector lender by market capitalisation, has raised $1.75 billion through senior unsecured dollar bonds, marking its biggest overseas fundraise since the 2008 global financial crisis. The fundraise comes as Indian banks increasingly tap overseas debt markets to diversify funding sources and take advantage of favourable borrowing conditions.
Following the announcement, shares of HDFC Bank rose as much as 0.44% to ₹729.70 on the BSE in early trade on Friday. At the current market price, the bank has a market capitalisation of around ₹11.21 lakh crore.
The stock hit a 52-week low of ₹715.05 on August 19 and remains under pressure, having declined over 26% so far in 2026 and around 5% in the past month. Over the past year, the most valued private lender has delivered a negative return of 27%, retreating from its 52-week high of ₹1,020.35 touched on October 23, 2025.
In an exchange filing on Thursday, HDFC Bank said the issuance was completed through its GIFT City branch and comprised two tranches, a $500 million three-year bond and a $1.25 billion five-year bond.
“We are pleased to inform you that HDFC Bank Limited acting through GIFT City Branch has completed the issue of total US$ 1,750 million Senior Unsecured Bonds,” the bank said.
As per the release, the three-year notes carry a coupon of 5.159%, while the five-year notes carry a coupon of 5.401%, with interest payable semi-annually. Both tranches are scheduled to settle on August 26. The three-year bonds will mature on August 26, 2029, and the five-year bonds on August 26, 2031.
The three-year bonds were issued at a spread of 88 basis points over US Treasuries, while the five-year bonds were priced at a spread of 100 basis points.
The senior unsecured bonds will be listed on India INX and NSE International Exchange. Moody’s has assigned a Baa3 rating with a stable outlook, while S&P Global Ratings has assigned a BBB rating.
HDFC Bank’s fundraise comes as Indian lenders increasingly tap overseas debt markets to diversify funding sources. IDFC First Bank, ICICI Bank and State Bank of India have also raised funds through overseas debt markets recently. The borrowing window has been supported by favourable funding conditions and the Reserve Bank of India’s concessional swap facility for external commercial borrowings, available until the end of 2026.
Earlier this week, HDFC Bank said the Reserve Bank of India, through a letter dated August 19, approved Life Insurance Corporation of India’s application to acquire an aggregate holding of up to 9.99% in the bank.
LIC held 4.11% of HDFC Bank’s total share capital as of August 14, according to the bank. The approval is subject to applicable banking, foreign exchange and securities market regulations.
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