HDFC raises $750-m ECB, first under RBI's special swap plan

HDFC Bank raised $750 million in offshore bonds at a final coupon of 5.067%, priced 90 basis points above the 5-year US treasury, marking the tightest spread for any Indian private sector bank. The issue attracted an order book of $2.1 billion from about 90 investors, with Asia accounting for 68% of the demand. This is the first issuance under the RBI's new 1.5% fixed-rate swap window for external borrowings, which eliminates hedging costs of up to 4%, and other lenders like SBI, PFC, REC, and NaBFID are expected to follow suit with potential inflows estimated close to $75 billion by MUFG.