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HDFC Bank issues its first-ever sustainable finance bond; raises $300 million

HDFC Bank issues its first-ever sustainable finance bond; raises $300 million

The HDFC Bank has announced that it has raised $300 million through its first-ever sustainable finance bond issue. This is part of an overall raise of $750 million through Regulation S Bonds. While $ 300 million has been raised for three years with a 95 basis points spread over the US Treasury, another $450 million has been raised for a tenure of 5 years, with a spread of 108 basis points over the US Treasury. These are the tightest credit spreads achieved by an Indian issuer for a three-year sustainable bond and a five-year senior unsecured bond for a similar size of USD Reg S issuance.

The proceeds of the sustainable finance bond will be utilised for funding green and social loans in accordance with the sustainable finance while the rest of the proceeds will go towards financing general banking activities, the bank stated in a press release.

”The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, SMEs and affordable housing. We are strongly committed towards building a green and social portfolio even as we continue adhering to the Bank’s risk philosophy,” said Arup Rakshit, Group Head-Treasury, HDFC Bank.

The bonds will be listed on the India International Exchange (India INX) in GIFT IFSC.

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