Priya Patel
HDFC Bank has raised $300 million through its first ever sustainable finance bond issue as part of an overall raise of $750 million. The three-year bonds have a spread of 95 basis points over the US Treasury, while the five-year bonds have a spread of 108 basis points. The funds raised through the sustainable finance bonds will be used for lending towards electric vehicles, SMEs, and affordable housing. The bonds will be listed on India International Exchange.
This move by HDFC Bank demonstrates its commitment to building a green and social portfolio, in line with its risk philosophy. The bank aims to prioritize lending towards environmentally friendly projects and initiatives that promote social inclusion and economic development.
The issuance of sustainable finance bonds is becoming increasingly popular among businesses and financial institutions globally. These bonds allow investors to support projects that have a positive impact on the environment and society, while also providing a financial return. These bonds are part of a growing trend towards responsible investing and sustainable finance.
HDFC Bank’s successful issuance of sustainable finance bonds highlights the increasing demand for such instruments in the market. This demonstrates that investors are becoming increasingly interested in supporting socially and environmentally responsible projects.
The listing of these bonds on the India International Exchange further enhances the visibility and credibility of sustainable finance in India. This provides a platform for companies and investors to engage in sustainable finance activities and encourages the growth of sustainable finance in the country.
In conclusion, HDFC Bank’s first-ever sustainable finance bond issuance is a significant milestone for the bank and the sustainable finance market in India. The funds raised will support environmentally friendly projects and initiatives, promoting sustainable development and economic growth.
