INSUBCONTINENT EXCLUSIVE:
Mumbai: HDB Financial Services, a subsidiary of HDFC Bank, is raising $300 million in its first-ever overseas syndicated loan as it aims to
The loan would have a three-year maturity
It could be priced after adding about 133 basis points over the London Interbank Offered Rate (LIBOR), an international gauge.
HSBC, State
HSBC declined to comment.
The loan cost on a fully hedged basis may be on a par or marginally tighter than local borrowings, said dealers
involved in the exercise.
The bank planned to sell the shares in HDB Financial Services before March 31 in a deal that may raise about Rs
10,000 crore ($1.4 billion), Bloomberg reported a few months ago.
NBFCs have been struggling to raise money locally after the IL-FS defaults
Its long term rating is triple-A with stable outlook.
The overall loan portfolio has grown 22 per cent to Rs 56,287 crore as on June 30,
2019, from Rs 45,889 crore a year ago
The loan book has also diversified, with increased presence in commercial vehicle/construction equipment (CV/CE) financing and business
Financial reported a profit after tax of Rs 1,153 crore on a total income of Rs 8,724 crore for fiscal 2019 as against Rs 933 crore and Rs
7,027 crore, respectively, in fiscal 2018, show CRISIL data.
The company has also widened its reach
With a diversified product offering and a pan-India presence, CRISIL expects growth for HDB Financial to be above the industry average over
Slippages in the asset financing book led to the increase in gross non-performing assets.