India's largest private lender, HDFC Bank, is looking to raise at least $500 million via dollar bonds this week, tapping the central bank's subsidised hedging window for overseas borrowings, three sources directly aware of the matter said on Tuesday. The private bank's issue comes after Reuters reported that state-run lenders State Bank of India and Bank of Baroda were also in talks to raise dollars this way.
HDFC Bank's plans include a five-year bond issue, with an initial price guidance of 5-year U.S. Treasury yield plus 120 basis points, the sources said.
