HDFC Bank raises $300 million through maiden sustainable bond issue to finance green loans
As per the Bank’s provision, the proceeds of the sustainable finance bond will be utilized for funding green and social loans under sustainable finance, while the remaining will be deployed for financing general banking activities.
The private sector lender HDFC Bank has raised $300 million through its first-ever sustainable bond issue which would be used to finance electric vehicles and green loans. The capex amount is said to be raised for a tenure of three years.
The fundraising is part of an overall raise of $750 million through Regulation S Bonds along with a 95 bps spread over the US treasury and another $450 million for 5 years with a 108 bps spread over the US Treasury. The paper was rated Baa3[Stable] by Moody’s and BBB- [stable] by S&P.
As per the Bank’s provision, the proceeds of the sustainable finance bond will be utilized for funding green and social loans under sustainable finance, while the remaining will be deployed for financing general banking activities.Read Also : Coal India signs JV Agreement with BHEL
The proceeds from the five-year notes will be used for funding and expansion of the bank’s foreign branches and foreign subsidiaries as well as for general corporate purposes. The notes will be issued by the bank’s Gujarat International Finance Tech City branch and will be listed on the India International Exchange.Read Also : NCL exceeds 125 million tonnes of coal production
As per the sources, the funds raised through sustainable finance bonds will be prioritized for lending towards electric vehicles, small and medium enterprises, and affordable housing. Barclays, Bank of America, JP Morgan, MUFG, and Standard Chartered are the joint global coordinators and lead managers.Read Also : Coal India First Aid Competition 2024 ' concludes at WCL
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