NEW DELHI: Largest private sector lender HDFC Bank on Wednesday said it has raised $300 million in its maiden sustainable finance bond issue.

The money raised is part of the $750 million bond-raise which was announced on Tuesday, a statement said, adding the papers will be listed on the GIFT City.

The $300 million sustainable finance bonds have been raised for a tenure of three years at a spread of 0.95 per cent over the US treasury, while the remaining $450 million will be repaid in five years at 1.08 per cent over the US Treasury, the statement said.

The spreads are the tightest by an Indian issuer. HDFC group head for treasury Arup Rakshit said the sustainable finance bonds funds will be prioritised for lending towards electric vehicles, small businesses, and affordable housing.