India’s biggest private bank plans to borrow through its GIFT City branch in Gujarat. The proposal has two parts: bonds maturing in three years and bonds maturing in five years. Each tranche is expected to bring in a minimum of $500 million.

Market sources say discussions with prospective investors have begun, with pricing expected to be settled by Friday. Strong investor appetite could push the borrowing above $1 billion. This would mark HDFC Bank’s second dollar bond market outing within two months, rather than a completed fundraising at this stage.

The timing matters because the RBI has brought forward the closure of its discounted foreign-exchange swap window from September to August 31. The facility offers banks a cheaper way to swap currencies and manage exchange-rate exposure. Its approaching end is prompting lenders to accelerate overseas borrowing.

Other lenders are also tapping this market. ICICI Bank has approached US investors for dollar bonds, while IDFC First Bank raised $600 million in its debut dollar debt deal through a private placement. Completing HDFC Bank’s proposed $1 billion issue would take its overseas borrowing in this period to $1.75 billion. Indian lenders together have raised $7.55 billion since the RBI unveiled the concessional facility on June 5.