RBL Bank board approves $1 billion EMTN programme to raise overseas debt

The private lender may issue foreign-currency bonds, notes or other permitted debt securities through one or more transactions, depending on market conditions

RBL Bank’s board on Monday approved a plan to establish a $1 billion Euro Medium Term Note (EMTN) programme, giving the private lender a framework to raise funds through foreign-currency bonds and other debt securities in overseas markets.

 

The bank’s board approved the establishment of the EMTN programme under Regulation S of the US Securities Act of 1933, subject to applicable regulatory, statutory and other approvals, RBL Bank said in an exchange filing.

 

Under the programme, the bank may issue foreign-currency bonds, notes or other permitted debt securities of up to $1 billion from time to time through one or more transactions, depending on market conditions and regulatory requirements.

  

The securities issued under the programme will not be offered or sold to any investor in India.

 

While the Reserve Bank of India’s concessional swap window for FCNR(B) deposits has closed, its window for overseas foreign-currency borrowings remains open until December 31. Several banks that have yet to tap the dollar bond market are likely to look at raising funds overseas once spreads tighten, following a surge in bank bond issuances in the final weeks of August.

 

ICICI Bank and HDFC Bank have been the largest issuers among Indian banks so far. ICICI Bank raised $3.55 billion through dollar bond issuances between July and August, while HDFC Bank raised $2.5 billion between June and August. State Bank of India, Bank of Baroda, Kotak Mahindra Bank and IDFC First Bank have also tapped the dollar bond market in recent months.