HDFC Bank on August 26 became India's first lender to exclusively list its 3.7 percent $1 billion foreign currency additional tier-I (AT1) bonds in International Financial Services Centre (IFSC) of Gujarat International Finance Tec-City (GIFT).
"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 onshoring the offshore financial services for Indian entities," IFSCA Executive Director Manoj Kumar was quoted as saying in a press release issued by India INX, BSE’s international arm.
Global Securities Market (GSM), the primary market platform of India INX, has evoked significant interest since its establishment in 2018 and has more than $55 billion medium-term notes established and over $28 billion of bond listings till date.
Notably, HDFC Bank had on August 18 launched its $1 billion AT1 bond issue and was able to close the pricing at a level substantially lower than the initial guidance.
As against an initial guidance of 4.125 percent, the bank was able to get a final pricing of 3.7 percent.
Global rating agency Moody's Investors Service has given a Ba3 rating to the bond issue, three notches above baseline for the largest private sector lender by assets.
“We take immense pride in welcoming HDFC Bank on India INX on their exclusive listing of AT1 Bonds on India’s own IFSC," India INX's Managing Director and Chief Executive Officer V Balasubramaniam said."We along with our regulator IFSCA have an endeavour to provide the issuers with a comprehensive and seamless issuance and listing process at par with best global practices and hope to onboard more and more issuers on our platform in the near future," Balasubramaniam added.