Updated
Updated · Bloomberg · Jun 19
Indian Banks Plan $2.5 Billion Bond Sales as RBI Swap Cuts Dollar Borrowing Costs
Updated
Updated · Bloomberg · Jun 19

Indian Banks Plan $2.5 Billion Bond Sales as RBI Swap Cuts Dollar Borrowing Costs

3 articles · Updated · Bloomberg · Jun 19

Summary

  • At least four Indian lenders are preparing about $2.5 billion of bond sales in coming weeks, using a Reserve Bank of India facility that lowers the cost of dollar funding.
  • State Bank of India may raise as much as $1 billion, while Axis Bank, Bank of Baroda and Power Finance Corp. each plan at least $500 million, according to people familiar with the plans.
  • Most of the planned borrowing is expected to carry five-year maturities, pointing to a coordinated push to lock in cheaper offshore funding through the RBI swap window.

Insights

As Indian banks raise $2.5B in dollar debt, are new regulations creating a hidden risk for the economy?
How will this massive Indian bond sale impact global investor appetite for emerging market debt?
This $2.5B bond sale funds India's growth. But where will the money actually be spent?