HDFC Bank to raise Rs 50,000 crore via bonds in a year

HDFC Bank said on Tuesday it plans to raise Rs 50,000 crore through the issuance of debt instruments over the next one year.

The Board of Directors of the bank is scheduled to meet on April 15 to consider the proposal. The funds will be raised via the issuance of perpetual debt instruments, tier II capital bonds, and long-term 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 total amount of Rs 50,000 crores over the period of next 12 months through private placement mode,” HDFC Bank said in a regulatory filing to the stock exchanges.

In December 2022, HDFC Bank had raised Rs 5,000 crore via 10-year Basel III-compliant, Tier-II bonds.

The fresh fundraising proposal comes ahead of the bank’s merger with Housing Development Finance Corporation (HDFC).

Meanwhile, the bank has lowered marginal cost based lending rate (MCLR) by up to 85 basis points.

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