HDFC Bank has successfully raised $300 million through its first-ever sustainable finance bond, marking a significant step towards its commitment to environmental and social responsibility. This initial tranche is part of a larger $750 million fundraising effort through Regulation S bonds, with the remaining $450 million secured for a five-year term.
The three-year sustainable bond, boasting a competitive spread of 95 basis points over the US Treasury, represents the tightest credit spread achieved by an Indian issuer for a similar-sized offering. The proceeds from this bond issue will be used to fund green and social initiatives, aligning with established sustainable finance frameworks. While a portion will be allocated to general banking activities, the bank prioritizes lending towards electric vehicles, small and medium-sized enterprises, and affordable housing projects.
“This initiative reflects our unwavering commitment to building a green and socially responsible portfolio,” said Arup Rakshit, Group Head-Treasury at HDFC Bank. “The funds raised will empower us to support impactful projects while adhering to our strict risk management principles.”
The bonds will be listed on the India International Exchange (India INX) within the GIFT City. The offering received strong support from global financial institutions, with Barclays, BofA Securities, J.P. Morgan, MUFG, and Standard Chartered Bank acting as joint global coordinators and joint lead managers.
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