HDFC Bank prices $750 mln bond in largest offshore deal by lenders since 2023, say bankers

HDFC Bank raised $750 million via a 5-year dollar bond priced at 90 basis points over U.S. Treasuries, yielding 5.0670%, making it the largest offshore bond by an Indian lender since SBI's $750 million sale in May 2023. Robust investor demand compressed the spread from initial guidance of 120 bps, aided by the RBI's subsidised hedging facility for external commercial borrowings, bringing the all-in landed cost of funds to around 7%. Bankers expect $15-20 billion in ECB inflows over the next six months, with SBI and Bank of Baroda also lining up similar overseas debt sales.