India's largest private lender, HDFC Bank, has accepted bids worth $750 ​million for its planned dollar bonds, capitalising on ‌the central bank's subsidised hedging window for overseas ​borrowings, three merchant bankers said on ⁠Wednesday.

The deal is the largest by an Indian lender since the State Bank of India's $750 million five-year bond ‌sale in May 2023 and comes as SBI and Bank of Baroda line ‌up similar overseas debt sales.

HDFC Bank priced ‌its ⁠5-year bond issue at 90 basis ⁠points over U.S. Treasuries, translating to a yield of 5.0670%.

After launching with guidance at 120 basis points over Treasuries, ​robust investor demand compressed ‌the spread, bankers said.

The sources could not be named as they are not authorised to speak to the media. HDFC Bank did ‌not reply to a Reuters email seeking comment.

Earlier ​this month, the RBI said external commercial borrowings by banks and state-run ⁠companies would qualify for a subsidised hedging facility, helping cut the cost of managing currency risk.

The step ‌forms part of a wider RBI push to draw in dollar inflows and bolster the rupee.

"Considering the hedging discount, the all-in landed cost of funds for the bank should be around 7%," one of the bankers said.

Merchant bankers ‌expect inflows of around $15 billion to $20 billion through the ​ECB route over the next six months.

Proceeds of the bond issue will ⁠be used to support overseas branches and subsidiaries, fund ⁠growth in offshore businesses and for general corporate purposes, bankers said, citing a term sheet.

The ‌lender also has a call option due in August for a perpetual bond it ​had sold five years ago.

Published on June 17, 2026