HDFC Bank on Monday said the bank plans to raise capital by additional tier- I (AT1) bonds in the overseas market to fund its business growth.
The bank is expected to raise up to USD 1 billion from these dollar denominated bonds.
An offering memorandum (OM) has been prepared and shall be made available to the prospective investors in relation to the contemplated issue of notes, it said.
Regulatory filing read as
“In a letter dated July 13, 2021, we had informed the stock exchanges that the Board of Directors of HDFC Bank Limited (“Bank”) in its meeting held on July 17, 2021, is contemplating raising long term funds through the issuance of US$ Basel III Compliant Additional Tier 1 Bonds (“Notes”), in the international markets, subject to market conditions.
Further to our letter dated July 17, 2021, we hereby inform you that the Bank had approved the issuing of debt instruments in the form of the Notes, subject to market conditions.”
Note: Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.
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