HDFC Bank (NSE:HDFCBANK) and four other Indian private lenders are considering raising up to $3 billion through dollar bonds or loans, Bloomberg reported Tuesday, citing people familiar with the matter.
HDFC Bank is weighing a dollar bond of up to $1 billion, potentially in the coming weeks, the report said. Federal Bank (NSE:FEDERALBNK, BOM:500469), Kotak Mahindra Bank (NSE:KOTAKBANK, BOM:500247), RBL Bank (NSE:RBLBANK, BOM:540065) and Yes Bank (NSE:YESBANK, BOM:532648) are separately planning to raise $250 million to $500 million each, according to the report.
The lenders are seeking to tap a Reserve Bank of India facility that offers a fixed annual foreign-exchange swap rate of 1.5% for overseas borrowings with an average maturity of at least three years, Bloomberg noted. The facility is aimed at supporting capital inflows and reducing hedging costs.
HDFC Bank last raised $750 million through a five-year dollar bond in June, according to Bloomberg.
HDFC Bank, Federal Bank, Kotak Mahindra Bank, RBL Bank and Yes Bank did not immediately respond to' requests for comment.
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