HDFC Bank has raised $300 million through its first ever sustainable finance bond issue. This is part of an overall raise of $750 million through Regulation S Bonds, the bank notified in a statement.
While $300 million has been raised for a tenure of three years with a 95 basis points spread over US Treasury, another $450 million has been raised for a tenure of five years, with a spread of 108 basis points over the US Treasury, the statement added.
It further mentioned that the proceeds of the sustainable finance bond will be utilised for funding green and social loans in accordance with the sustainable finance, while the rest of the proceeds will go towards financing general banking activities.
Arup Rakshit, Group Head-Treasury, HDFC Bank, said in the statement, ”The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, SMEs and affordable housing. We are strongly committed towards building a green and social portfolio even as we continue adhering to the bank’s risk philosophy.”
