HDFC Bank Raises $1.75 Billion in Record Bond Sale

HDFC Bank raised $1.75 billion through a dual-tranche issuance of senior unsecured bonds on August 20, 2026, marking the largest single-shot debt fundraising by an Indian bank and the lender's largest overseas fundraise since the 2008 global financial crisis. The issuance, conducted via the bank's GIFT City branch, consists of $1.25 billion in five-year bonds with a 5.401 percent coupon and $500 million in three-year notes with a 5.159 percent coupon.

The sale attracted approximately $7 billion in orders, enabling the bank to price the bonds tighter than initial guidance. This move brings the bank's total funds raised through dollar bond sales to $2.50 billion since June, surpassing the $2.05 billion raised by ICICI Bank during the same period. The bonds are scheduled to settle on August 26 and will be listed on the NSE International Exchange and the India International Exchange (IFSC) Limited.

The fundraising follows a trend of Indian lenders utilizing a concessional hedging window provided by the Reserve Bank of India, which is scheduled to close early on August 31. HDFC Bank intends to use the proceeds to support business growth and provide leverage for customers depositing under a discounted dollar deposit scheme. Shares of the bank traded higher on August 21 following the announcement.