RBL Bank approves US$1 billion overseas bond issuance via Euro Medium Term Note
RBL Bank's board approved raising up to one billion dollars from global investors through a new Euro Medium Term Note Programme. Concurrently, analysts expect Bank of Maharashtra and Canara Bank to issue similar five hundred million dollar debt bonds in September.
RBL Bank stated its board on Monday approved mobilization of up to US$1 billion from overseas investors. The bank intends to use bond issuance under a Euro Medium Term Note Programme, known as the EMTN Programme, which complies with Regulation S of the US Securities Act of 1933. This plan allows the bank to issue foreign currency debt securities over time based on market conditions and regulatory rules. A Borrowing Committee will handle specific actions related to this funding source.
In parallel developments, bankers indicated that Bank of Maharashtra and Canara Bank plan to raise $500 million each through dollar bonds in September. These institutions aim to use a concessional swap window to reduce hedging costs against currency exchange rate fluctuations. Bank of Maharashtra will conduct its first such issuance, while Canara Bank has issued similar debt before.
