HDFC Bank is returning to the dollar bond market for the second time in two months, with plans to raise at least $1 billion through overseas debt issuance as Indian banks accelerate fundraising ahead of the Reserve Bank of India’s special foreign-exchange swap window closing on August 31. The lender plans to issue at least $500 million each through three-year and five-year bonds via its GIFT City branch, with final pricing expected by Friday. Bankers said the issue could exceed $1 billion depending on investor demand. If completed, the latest transaction would take HDFC Bank’s total proceeds from dollar bond issues to around $1.75 billion, among the highest raised by an Indian bank through such instruments. The fundraising comes after the RBI decided to close its discounted swap facility for hedging non-resident deposits earlier than initially planned. Indian banks have raised about $7.55 billion through dollar bonds since the concessional hedging facility was announced in June. ICICI Bank has also tapped US-based investors for recent dollar bond issues, while IDFC First Bank raised $600 million through its debut three-year dollar debt sale via private placement. The rush highlights growing demand among Indian lenders for overseas funding before the special swap window expires.
