HDFC Bank accepts bids for 10-yr Tier II bonds -traders

India's HDFC Bank HDFCBANK has accepted bids worth 150 billion rupees ($1.85 billion) for Basel III-compliant, Tier-II bonds maturing in 10 years, three merchant bankers said on Thursday.

The private lender will pay an annual coupon of 7.86% on this issue and had invited commitment bids from bankers and investors earlier in the day, they said.

The bonds are rated AAA by CRISIL and the issue will close for subscription on Friday.

In September, the bank raised 30 billion rupees selling Basel III-compliant, additional Tier-I perpetual bonds at an annual coupon of 7.84% coupon.

($1 = 81.1300 Indian rupees)