Debt

Debt financing

SBI, Axis, BoB, PFC eye $2-B ECBs via RBI’s 1.5% special swap

Economic Times  

State Bank of India (SBI), Axis Bank, Bank of Baroda (BoB), and the government-owned non-bank lender Power Finance Corporation (PFC) are preparing to tap overseas bond markets to collectively raise at least $2-B in external commercial borrowings (ECBs). These fundraising initiatives could commence next week.These financial institutions are leveraging the 1.5% fixed-rate swap facility provided by the Reserve Bank of India (RBI) on ECBs, a measure announced during the central bank’s monetary policy review meeting on June 5. Institutions with existing medium-term note (MTN) programs are expected to lead the fundraising to capitalise on these incentives.SBI, given its scale, is expected to raise $1-B, while other participating lenders may target smaller tranches of up to $500-M to gauge market appetite.