Home >Industry >Banking >HDFC Bank becomes 1st lender to list $1-bn AT-1 bonds on IFSC

HDFC Bank on Thursday became the first Indian lender to list its $1 billion foreign currency additional tier-I (AI-1) bonds, priced at 3.7%, on the International Financial Services Centre (IFSC) of the Gujarat International Finance Tec-City (GIFT).

Global Securities Market, the primary market platform of India INX, has received significant interest since it was established in 2018 and has over $55 billion medium term notes and over $28 billion of bond listings till date.

“We, along with our regulator IFSCA, have an endeavour to provide issuers with a comprehensive and seamless issuance and listing process at par with best global practices and hope to on-board more and more issuers on our platform in the near future," INDIA INX managing director and chief executive officer V. Balasubramaniam said.

India INX, BSE’s international arm, began trading activity on 16 January 2017 and is India’s first international exchange set up at the GIFT IFSC. The average daily turnover in July was at $14.97 billion, with 84% market share among the exchanges at IFSC.

“The primary listing of HDFC AT-1 bonds demonstrates the competitiveness of both the IFSC exchanges; India INX and NSE IFSC internationally. This is a major milestone for GIFT IFSC in on-shoring the offshore financial services for Indian entities. IFSCA envisions that the recently notified regulations on issuance and listing of securities will enable more financial instruments to be listed and traded in this jurisdiction," said Manoj Kumar, executive director, IFSCA.

On 19 August, the private sector lender had raised $1 billion via US dollar denominated Basel III AT-1 notes from global markets. The fundraising was aimed at strengthening the bank’s balance sheet amid a rebound in credit growth after the pandemic’s second wave ebbed.

“This is the largest US dollar AT-1 offering by any bank from India. This will shore up HDFC Bank’s already strong Tier I capital base. The offering was well received by global investors and was oversubscribed by over three times after the final price guidance was released," HDFC Bank said in a statement. The notes were rated Ba3 by Moody’s Rating Services Ltd.


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