HDFC breaks new ground with record convertible

HDFC, the leading housing lender in India, broke new ground yesterday with a two times subscribed convertible bond. The $500 million issue was significant in two key respects. First, it was the largest convertible bond ever from India - beating a Tata Motors issue from April 2004 - and was likewise the largest Asian convertible bond to date in 2005 - beating a $475 million issue by LG Philips. Second, it was the first convertible bond from India's financial sector following regulatory changes by the Reserve Bank of India this month.