1. Home
  2. Infrastructure Urban
  3. ECONOMY & POLICY
  4. HDFC Bank raises $300 mn in debut sustainable bond for EV, Green Loans
HDFC Bank raises $300 mn in debut sustainable bond for EV, Green Loans
ECONOMY & POLICY

HDFC Bank raises $300 mn in debut sustainable bond for EV, Green Loans

12 Feb 2024 2 Min Read CW Team
HDFC Bank has successfully raised $300 million in its inaugural sustainable bond issuance, earmarking the proceeds for the financing of electric vehicles and green loans. The three-year bond, carrying a spread of 95 basis points over the US treasury, is part of a broader initiative to secure $750 million through Regulation S bonds.

The bank specified that the remaining $450 million has been acquired for a five-year term with a spread exceeding 108 basis points over the US Treasury. These bonds are set to be listed on the Indian International Stock Exchange (India NIX) within the GIFT International Financial Services Centre (IFSC).

Arup Rakshit, the group head of treasury at HDFC, emphasised, "The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, Small and Medium Enterprises, and affordable housing. We are strongly committed to building a green and social portfolio even as we continue adhering to the Bank?s risk philosophy."

HDFC Bank enlisted the support of Barclays, BofA Securities, JP Morgan, MUFG, and Standard Chartered Bank as joint global coordinators and lead managers for this initiative. Notably, the bank asserts that these represent the most competitive credit spreads achieved by an Indian issuer for a three-year sustainable bond and a five-year senior unsecured bond of comparable size within the US dollar Regulation S issuance.

This development follows HDFC's receipt of a $400 million loan from the International Finance Corporation in December 2022, aimed at enhancing climate-smart, affordable, and green housing initiatives in India. Additionally, HDFC subscribed to India's inaugural sovereign green bonds issue during the same year.

In a parallel effort, last August, ICICI Bank extended loans totalling $6.7 billion to support sustainability and renewable energy sectors, encompassing electric vehicles and green-certified real estate, for the fiscal year 2023.

HDFC Bank has successfully raised $300 million in its inaugural sustainable bond issuance, earmarking the proceeds for the financing of electric vehicles and green loans. The three-year bond, carrying a spread of 95 basis points over the US treasury, is part of a broader initiative to secure $750 million through Regulation S bonds. The bank specified that the remaining $450 million has been acquired for a five-year term with a spread exceeding 108 basis points over the US Treasury. These bonds are set to be listed on the Indian International Stock Exchange (India NIX) within the GIFT International Financial Services Centre (IFSC). Arup Rakshit, the group head of treasury at HDFC, emphasised, The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, Small and Medium Enterprises, and affordable housing. We are strongly committed to building a green and social portfolio even as we continue adhering to the Bank?s risk philosophy. HDFC Bank enlisted the support of Barclays, BofA Securities, JP Morgan, MUFG, and Standard Chartered Bank as joint global coordinators and lead managers for this initiative. Notably, the bank asserts that these represent the most competitive credit spreads achieved by an Indian issuer for a three-year sustainable bond and a five-year senior unsecured bond of comparable size within the US dollar Regulation S issuance. This development follows HDFC's receipt of a $400 million loan from the International Finance Corporation in December 2022, aimed at enhancing climate-smart, affordable, and green housing initiatives in India. Additionally, HDFC subscribed to India's inaugural sovereign green bonds issue during the same year. In a parallel effort, last August, ICICI Bank extended loans totalling $6.7 billion to support sustainability and renewable energy sectors, encompassing electric vehicles and green-certified real estate, for the fiscal year 2023.

Next Story
Infrastructure Transport
22 Nov 2024

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

A new greenfield highway connecting Kharagpur in West Bengal and Visakhapatnam in Andhra Pradesh, passing through Odisha, is set to be constructed soon. This expressway is poised to become a vital logistics corridor, enhancing high-speed transportation in the region. Works Minister Prithviraj Harichandan shared that preliminary preparations for the project have already commenced. He emphasised that the expressway would play a crucial role in the Gati Shakti Framework of the Central government, describing it as a groundbreaking initiative in road construction for Odisha. Greenfield roads typi..

Read More
Next Story
Infrastructure Urban
22 Nov 2024

LTTS wins project to develop smart cities in Colorado USA

Mid-sized Indian IT services company L&T Technology Services (LTTS) announced on Monday a strategic partnership with the Colorado Smart Cities Alliance (CSCA) to develop smart city projects across Colorado by integrating innovation and technology. In a regulatory filing, LTTS stated that the collaboration would utilize its advanced engineering expertise to support CSCA's mission of enhancing urban living and creating sustainable ecosystems through smart city solutions. The partnership aims to develop sustainable, efficient, and technologically advanced communities by pooling resources and exp..

Read More
Next Story
Infrastructure Transport
22 Nov 2024

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Bengaluru’s metro network is set for a major expansion, aiming to extend its total length to 175 km by 2026. This ambitious project is part of the Namma Metro initiative, designed to improve connectivity across the city, alleviate traffic congestion, and promote sustainable urban mobility. The expansion involves constructing new metro corridors, such as the Purple Line and the Outer Ring Road-Airport Line, which will link major city hubs, commercial centres, and residential areas. This development is expected to enhance accessibility for commuters throughout Bengaluru. A key highlight of t..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister
ROADS & HIGHWAYS
22 Nov 2024

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

LTTS wins project to develop smart cities in Colorado USA
SMART CITIES
22 Nov 2024

LTTS wins project to develop smart cities in Colorado USA

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility
RAILWAYS & METRO RAIL
22 Nov 2024

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Chennai Metro finishes piling work from Kodambakkam Powerhouse to Porur
RAILWAYS & METRO RAIL
22 Nov 2024

Chennai Metro finishes piling work from Kodambakkam Powerhouse to Porur

Ambuja, ACC stocks plunge after Gautam Adani's US indictments
ECONOMY & POLICY
22 Nov 2024

Ambuja, ACC stocks plunge after Gautam Adani's US indictments

Rajasthan govt and Centre to jointly run extended Jaipur Metro lines
RAILWAYS & METRO RAIL
22 Nov 2024

Rajasthan govt and Centre to jointly run extended Jaipur Metro lines

Hyderabad Civic Body Demolishes Five-Storey Building in Gachibowli
Real Estate
22 Nov 2024

Hyderabad Civic Body Demolishes Five-Storey Building in Gachibowli

Hill highway project to finish by 2026, says PWD minister
ROADS & HIGHWAYS
22 Nov 2024

Hill highway project to finish by 2026, says PWD minister

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000