HDFC Bank plans to raise funds via AT-1 bonds from overseas market
Published On: Monday, August 16, 2021 | By: Team KnowMyStock
HDFC Bank on Monday said the bank plans to raise capital by additional tier- I (AT1) bonds in the overseas market to fund its business growth. The bank is expected to raise up to USD 1 billion from these dollar-denominated bonds. “We had informed the stock exchanges that the Board of Directors of HDFC Bank in its meeting held on July 17, 2021, is contemplating raising of long term funds through the issuance of $ Basel III Compliant Additional Tier 1 Bonds (Notes), in the international markets, subject to market conditions,” it said in its filing. An offering memorandum (OM) has been prepared and shall be made available to the prospective investors in relation to the contemplated issue of notes, it said. The notes will not be offered or sold in India under the applicable laws, including the Companies Act, 2013, as amended from time to time, it added.
Earlier in April, the bank had informed that it is planning to raise up Rs 50,000 crore during the next 12 months through issuing bonds. “The bank proposes to raise funds by issuing perpetual debt instruments (part of additional tier-I capital), tier-II capital bonds and long-term bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore over the period of the next 12 months through the private placement mode,” HDFC Bank had said. Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.
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