HDFC Bank Goes Abroad for AT1 Bond Sale Amid India Clampdown

India’s most valuable lender priced dollar AT1 Wednesday
Bond is only the second offshore AT1 deal by Indian bank

A HDFC Ltd. bank branch in Jalgaon, Maharashtra, India.
Photographer: Dhiraj Singh/Bloomberg

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By Rahul Satija

August 18, 2021 at 8:35 AM UTC

Updated on

August 19, 2021 at 5:54 AM UTC

This article is for subscribers only.

India’s HDFC Bank Ltd. sold a riskier dollar bond overseas that helps bolster its balance sheet, in a move that local peers may follow after the market regulator tightened its rules in the domestic market.

The country’s biggest lender by market capitalization priced Additional Tier 1 notes in the offshore market at a yield of 3.7%. Those are unsecured securities with voluntary call options but no set maturity. It’s only the second such deal abroad from an Indian lender after the State Bank of India sold such securities in 2016.