Home Finance HDFC Bank Subsidiary HDB Financial to Raise $300M in Overseas Loan

HDFC Bank Subsidiary HDB Financial to Raise $300M in Overseas Loan

Indian bank HDFC Bank’s subsidiary HDB Financial is raising $300 million in overseas loans. It is going to be the unit’s first-ever syndicated overseas loan and marks a shift in business strategy. According to a source close to the developments, the firm is trying to diversify its source of borrowing.

Reports suggest that the loan is going to mature in three years, and it is going to be priced 133 basis points higher than the London Interbank Offered Rate (LIBOR). LIBOR is an international standard for such loans. The source also added that HDB Financial has also started its syndication program, and it is going to conclude soon.

HDB Financial is being assisted by the State Bank of India, HSBC and the Bank of Baroda in its quest to raise this loan. That being said, dealers have revealed that even on a fully hedged basis, the loan should be on parity with domestic borrowings. Earlier on in March this year, it had been reported that HDB was going to sell its shares to raise $1.4 billion.

2019 has been a tough year for Non-Bank Financial Companies (NBFC) due to defaults from one of the biggest companies in the industry, IL&FS. It has resulted in many of the companies in the sector to seek foreign loans.

The rating agency CRISIL has prepared a note on HDB back on August 21 and stated that the company might be looking to expand into other services. The note stated, “HDB Financial has emerged as one of the larger players in the retail financing space, over the past few years. HDB Financial is now expanding into consumer durable financing, digital products loans, and other related segments.”

David Pender
David Pender
David is a journalist interested in writing news-stories regarding forex. He has been in forex industry since 2014. he recently, joined our team as a news writer. He studied mass communication and has 7+ years of experience. He is an avid trader. He can be reached by email: david@forexnews.world.

Must Read

Trade99 Review: Reliable, Secure, Innovative

Trading has become less consuming these days because of the availability of many online platforms. Online platforms are user-friendly. They do not need any...

American Automotive Firm Rivian Raises $1.3 Billion in Fund Investment Round

Headquartered in America, the globally leading automaker and automotive tech firm, Rivian has broadcasted the news about the closure of its highly anticipated investment...

Iran Moots Common Cryptocurrency for Muslim Nations At Kuala Lumpur 2019 Summit

At the on-going 2019 Kuala Lumpur Summit in Malaysia, Iranian President Hassan Rouhani called for the creation of a common cryptocurrency for Muslim countries....

HDFC Bank Joins the League of $100 Billion Market Cap Companies

HDFC Bank Ltd has crossed the $100 billion mark in terms of market capitalization. With this, it has become the 3rd firm in India...

UAE Vows Dh55 Million as Assistance for School Students in Sudan

The UAE has pledged to donate Dh55 million to help school-going children in Sudan. The financial assistance from the Abu Dhabi Fund for Development...