Now Reading: ICICI Bank, Axis Bank tap dollar debt again, raise $300m each
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ICICI Bank, Axis Bank tap dollar debt again, raise $300m each
ICICI Bank and Axis Bank have returned to the US dollar debt market for the second time in under two months, each raising $300 million, thehindubusinessline.com reports quoting merchant bankers. ICICI Bank's…
The Story in Brief
ICICI Bank and Axis Bank have returned to the US dollar debt market for the second time in under two months, each raising $300 million, thehindubusinessline.com reports quoting merchant bankers. ICICI Bank's five-year bonds carry a coupon of 5.3520%, while Axis Bank is reissuing its 5.3480% June 2031 bonds, taking the outstanding to $600 million. Both private placements close next week and will be listed on India's IFSC exchanges. The issues come under RBI's lower-cost hedging facility, which caps hedging cost at 1.5% annually. Last month, ICICI Bank raised $1 billion in the largest such issue by an Indian lender in 14 years.
The Indian Opinion
The return of major Indian banks to dollar debt markets within weeks suggests strong investor appetite, not desperation. Some critics may see this as rising external borrowing, but these are well-rated banks using RBI's hedging facility to lower costs. The real test will be whether smaller banks can access similar terms or if only top-tier lenders benefit. Also, watch if corporate external commercial borrowing picks up at these rates, which could signal a shift in India's capital account strategy.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
