MUMBAI/April 18-2022: The board of directors of HDFC Bank Ltd on Monday (April 18) approved the plan to raise up to Rs50,000 crore through the issue of bonds within the next 12 months.
The bonds, including Additional Tier 1 capital bonds, will be issued through private placements, according to a filing by the bank with the stock markets.
A release issued by the bank today (Monday) said the board has “approved the issuance of perpetual debt instruments (part of Additional Tier I capital), Tier II capital bonds and long-term bonds (financing of Infrastructure and Affordable Housing) up to a total amount of Rs50,000 crore in the period of next twelve months through private placement mode, subject to the approval of the shareholders of the bank and any other regulatory approvals as may be applicable.”
It was last week the HDFC Bank has proposed a merger with its parent HDFC Ltd which will ultimately lead to the formation of a much bigger HDFC Bank.
HDFC Bank shares were trading at Rs1400 at 12 noon (April 18), down by 4.43 per cent compared with the closing price on the last trading day.
As on March 31, 2021, the bank’s subordinated and perpetual debt capital instruments amounted to Rs9,127 crore (previous year: Rs10,232 crore) and Rs8,000 crore (previous year: Rs8,000 crore) respectively, according to the bank’s annual report for FY21.
