Key facts
- State Bank of India and Bank of Baroda plan to issue dollar bonds totaling approximately $1 billion.
- The bonds will have a tenor of five years.
- This issuance marks the first use of the Reserve Bank of India's subsidised hedging window for overseas borrowings.
- Indian companies collectively raised over $3.24 billion in debt in the past week.
- In April, Indian firms raised $3.76 billion through External Commercial Borrowings (ECBs).
State Bank of India and Bank of Baroda are preparing to issue dollar-denominated bonds totaling approximately $1 billion, marking the first time these state-run lenders will utilize the Reserve Bank of India's (RBI) subsidised hedging window for foreign borrowings. Each bank is targeting to raise around $500 million through five-year bonds.
This move follows a period of significant debt issuance by Indian companies. In the past week alone, Indian firms raised over $3.24 billion in debt, benefiting from measures by the RBI that have reduced borrowing costs. In April, Indian companies collectively raised $3.76 billion via External Commercial Borrowings (ECBs), with notable participation from companies like Reliance and Air India.