HDFC Bank scores big with $300M sustainable finance bond issue

The HDFC Bank, India’s largest private lender, has raised $300 million through its first-ever sustainable finance bond issue. The three-year sustainability bond was priced at a yield of 5.196%, which is 95 basis points over the three-year US Treasury yield. The funds raised through the bond issue will be prioritized for lending towards electric vehicles, small and medium enterprises, and affordable housing. Additionally, HDFC Bank raised another $450 million through senior unsecured five-year dollar bonds, with the proceeds to be used for the bank’s foreign branches and subsidiaries, as well as general corporate purposes.