HDFC draws strong demand for $500 million bond

More than $5 billion of demand helps the Indian lender to print a tight deal.

India’s HDFC Bank raised $500 million of five-year senior debt on Wednesday night. Pricing on the bonds tightened by 25bp from the initial talk as investors embraced the opportunity to buy into the Indian banking sector.

The bonds have a coupon of 3% and were priced at 99.687 to yield 3.068%, which represents a 230bp spread over US Treasuries. HDFC was able to print such a tight deal thanks to $5 billion of demand from more than 250 accounts, according to the leads Bank of America Merrill Lynch, Citi, J.P. Morgan and Standard Chartered.

Demand carried into secondary trading yesterday, where the bonds tightened...

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