HDFC raises $300 mn in debut sustainable bond for EV
ECONOMY & POLICY

HDFC raises $300 mn in debut sustainable bond for EV

HDFC Bank has successfully raised $300 million in its inaugural sustainable bond issuance, earmarking the proceeds for the financing of electric vehicles and green loans. The three-year bond, carrying a spread of 95 basis points over the US treasury, is part of a broader initiative to secure $750 million through Regulation S bonds.

The bank specified that the remaining $450 million has been acquired for a five-year term with a spread exceeding 108 basis points over the US Treasury. These bonds are set to be listed on the Indian International Stock Exchange (India NIX) within the GIFT International Financial Services Centre (IFSC).

Arup Rakshit, the group head of treasury at HDFC, emphasised, "The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, Small and Medium Enterprises, and affordable housing. We are strongly committed to building a green and social portfolio even as we continue adhering to the Bank?s risk philosophy."

HDFC Bank enlisted the support of Barclays, BofA Securities, JP Morgan, MUFG, and Standard Chartered Bank as joint global coordinators and lead managers for this initiative. Notably, the bank asserts that these represent the most competitive credit spreads achieved by an Indian issuer for a three-year sustainable bond and a five-year senior unsecured bond of comparable size within the US dollar Regulation S issuance.

This development follows HDFC's receipt of a $400 million loan from the International Finance Corporation in December 2022, aimed at enhancing climate-smart, affordable, and green housing initiatives in India. Additionally, HDFC subscribed to India's inaugural sovereign green bonds issue during the same year.

In a parallel effort, last August, ICICI Bank extended loans totalling $6.7 billion to support sustainability and renewable energy sectors, encompassing electric vehicles and green-certified real estate, for the fiscal year 2023.

HDFC Bank has successfully raised $300 million in its inaugural sustainable bond issuance, earmarking the proceeds for the financing of electric vehicles and green loans. The three-year bond, carrying a spread of 95 basis points over the US treasury, is part of a broader initiative to secure $750 million through Regulation S bonds. The bank specified that the remaining $450 million has been acquired for a five-year term with a spread exceeding 108 basis points over the US Treasury. These bonds are set to be listed on the Indian International Stock Exchange (India NIX) within the GIFT International Financial Services Centre (IFSC). Arup Rakshit, the group head of treasury at HDFC, emphasised, The funds raised through the sustainable finance bonds will be prioritised for lending towards electric vehicles, Small and Medium Enterprises, and affordable housing. We are strongly committed to building a green and social portfolio even as we continue adhering to the Bank?s risk philosophy. HDFC Bank enlisted the support of Barclays, BofA Securities, JP Morgan, MUFG, and Standard Chartered Bank as joint global coordinators and lead managers for this initiative. Notably, the bank asserts that these represent the most competitive credit spreads achieved by an Indian issuer for a three-year sustainable bond and a five-year senior unsecured bond of comparable size within the US dollar Regulation S issuance. This development follows HDFC's receipt of a $400 million loan from the International Finance Corporation in December 2022, aimed at enhancing climate-smart, affordable, and green housing initiatives in India. Additionally, HDFC subscribed to India's inaugural sovereign green bonds issue during the same year. In a parallel effort, last August, ICICI Bank extended loans totalling $6.7 billion to support sustainability and renewable energy sectors, encompassing electric vehicles and green-certified real estate, for the fiscal year 2023.

Next Story
Technology

AirBrick Infra Sets Rs 1 billion Target, Expands to Dubai and Tier-II Cities

AirBrick Infra, one of India’s fastest-growing AI-led commercial interior design and build firms, has announced a sales order target of Rs 1 billion for FY 2025–26. The projection represents a 50 per cent growth over the previous fiscal year and reflects rising demand, increased repeat business, and the company's robust tech-first delivery model.  Now in its third year of operations, AirBrick continues its rapid scale-up, having successfully delivered over 70 projects spanning 3 lakh sq ft in FY 2023–24. FY 2024–25 witnessed the onboarding of several Fortune 500 clients, sett..

Next Story
Resources

Virtusa Foundation Powers Green Education Drive in Bengaluru

The Virtusa Foundation, CSR arm of digital engineering and technology leader Virtusa Corporation, has announced key infrastructure and mobility initiatives at the Ramakrishna Mission, Shivanahalli, Bengaluru. The launch marks the inauguration of a 16-room residential facility for lady teachers and the deployment of two solar-powered electric buses, underscoring Virtusa’s commitment to its core pillars of Education, Environment and Empowerment (3Es).  Located on the forest fringe near Bannerghatta National Park, the initiative supports tribal and underserved communities, complementi..

Next Story
Infrastructure Urban

Godrej Enterprises Drives India’s Smart Green Logistics Shift

As India accelerates its transformation into a global manufacturing and logistics hub, Godrej Enterprises Group (GEG) is taking the lead with its smart, sustainable intralogistics solutions. Through its Material Handling Equipment (MHE) and Storage Solutions businesses, GEG is redefining operational efficiency in modern warehouses and factories using IoT, automation, and AI. GEG has consistently maintained a 20–25 per cent market share in the intralogistics sector over the past three years. Today, over 37 per cent of GEG’s revenues come from its Good & Green portfolio, and its net..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?