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Updated December 21st, 2023 at 18:06 IST

HDB Financial Services secures Rs 2 billion in bids for 10-year subordinated bonds

The company plans to offer an 8.40% annual coupon rate for the bond issuance after inviting bids from bankers and investors earlier in the day.

Business Desk
Representative
Representative | Image:Shutterstock

HDB Financial Services in India has garnered bids totalling Rs 2 billion ($24.02 million) for its subordinated bonds with a 10-year maturity, according to three bankers who reported the development on Thursday. The company is set to offer an annual coupon rate of 8.40 per cent for this bond issuance, having earlier in the day invited bids from both bankers and investors. In a separate announcement earlier this month, HDB Financial Services raised Rs 9.91 billion through the reissue of 7.96 per cent November 2025 bonds and 7.988 per cent December 2026 bonds.

As of December 21, the reported deals include HDB Financial Services with a 10-year subordinated bond offering an 8.40 per cent coupon rate and an issue size of Rs 2 billion, SIDBI with two tenures (3 years, 4 months, and 22 days; 15 years) and respective coupon rates of 7.79 per cent and 7.65 per cent, Bajaj Finance's February 2026 reissue with a 2-year and 2-month tenure (coupon rate to be decided) and an issue size of Rs 6 billion plus a greenshoe option of Rs 30 billion, and Bajaj Finance with a 3-year and 13-day tenure (coupon rate to be decided) and an issue size of Rs 1.45 billion plus a greenshoe option of Rs 7.25 billion. Ratings for these issues include AAA from Crisil, Careedge, and Icra.

(With Reuters Inputs)

Published December 21st, 2023 at 18:06 IST

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