Market Chatter: HDFC Bank, Four Other Indian Lenders Weigh Up to $3 Billion Fundraising
HDFC Bank (NSE:HDFCBANK) and four other Indian private lenders are considering raising up to $3 billion through dollar bonds or loans, Bloomberg reported Tuesday, citing people familiar with the matter.HDFC Bank is weighing a dollar bond of up to $1 billion, potentially in the coming weeks, the report said. Federal Bank (NSE:FEDERALBNK, BOM:500469), Kotak Mahindra Bank (NSE:KOTAKBANK, BOM:500247), RBL Bank (NSE:RBLBANK, BOM:540065) and Yes Bank (NSE:YESBANK, BOM:532648) are separately planning to raise $250 million to $500 million each, according to the report.The lenders are seeking to tap a Reserve Bank of India facility that offers a fixed annual foreign-exchange swap rate of 1.5% for overseas borrowings with an average maturity of at least three years, Bloomberg noted. The facility is aimed at supporting capital inflows and reducing hedging costs.HDFC Bank last raised $750 million through a five-year dollar bond in June, according to Bloomberg.HDFC Bank, Federal Bank, Kotak Mahindra Bank, RBL Bank and Yes Bank did not immediately respond to' requests for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
