Mumbai: HDFC Bank has raised around Rs1600 crores through issue of subordinated debt to investors, a bank official said on Tuesday.
The bank sold 10-year lower Tier II bonds at a coupon of 10.75%, payable annually. It also issued 15-year upper Tier II bonds at a coupon of 10.85%.
The upper Tier II bonds have a call option at the end of the 10th year, allowing the company to buy back bonds early.
“The negotiations were done before the rate cuts,” Ashish Parthasarthy, deputy treasurer of HDFC Bank, said.
Reserve Bank of India lowered its short-term lending and borrowing rates by 100 basis points (bps) each on 6 December.
“The flows were completed today,” Parthasarthy said, referring to the inflow of proceeds from the bond said.