India’s HDFC Bank (NSE:HDFCBANK) has raised $1.75bn through a two-part offshore bond issuance, increasing its foreign-currency borrowing as Indian banks step up efforts to mobilise funds ahead of the Reserve Bank of India’s (RBI) earlier-than-planned closure of the special foreign currency non-resident bank or FCNR(B) deposit window, Mint reported, citing a market filing.

The Mumbai-listed private sector lender, through its GIFT City branch, raised $500mn via three-year senior unsecured notes and a further $1.25bn through five-year notes.

The three-year tranche carries a 5.159% coupon, while the five-year notes offer a 5.401% coupon. Both tranches are scheduled to settle on August 26.

The proceeds are expected to help HDFC Bank support its mobilisation of foreign-currency deposits from non-resident Indians under the FCNR(B) scheme.

The latest transaction follows an offshore borrowing of about $750mn by the bank in July. HDFC Bank had indicated at the time that it intended to raise additional foreign-currency funds to facilitate its FCNR(B) deposit mobilisation.

The latest bonds comprise senior unsecured, fixed-rate notes issued under the 144A and Regulation S formats.

HDFC Bank's fundraising comes shortly after the RBI brought forward the closing date of its special FCNR(B) deposit window to August 31 from the previously scheduled September 30.

The accelerated deadline has prompted Indian banks to intensify both overseas borrowing and efforts to attract foreign-currency deposits from NRIs before the facility expires.