HDFC Bank, SBI AT-1 rates set to influence pricing of other issuances

The bonds will have a call option from the fifth year onwards and are rated AA+ by CRISIL, CARE and India Ratings, sources said

In an eventful week for bond markets, the country’s two largest lenders — State Bank of India (SBI) and HDFC Bank — are set to issue additional tier-1 (AT-1) bonds worth Rs 10,000 crore in the next couple of days in order to raise capital.

The cut-off rates that would be set for the bonds of the two banking sector giants could influence the pricing of debt sales by other lenders. HDFC Bank’s AT-1 issue marks the first one by a private bank so far this year. The country’s largest private bank is tapping debt capital markets for an