Axis Bank to raise $700 million via RBI ECB swap
Axis Bank is set to raise $700 million by tapping into the Reserve Bank of India's special external commercial borrowing (ECB) swap facility.
The loan is split into two parts, one for three years and another for five years, and was set up as a "club loan," meaning a small group of lenders agreed to common terms.
Axis Bank tranches priced over SOFR
The three-year chunk is priced at 110 basis points over SOFR (benchmark secured overnight funding rate), while the five-year part goes for 120 to 125 basis points over SOFR.
The banks in the club loan deal have already agreed to finance the transaction, and more banks will join at the syndication stage.
This move is part of a bigger trend: more Indian banks are turning to international dollar loans, using the Reserve Bank of India's special external commercial borrowing (ECB) swap facility to boost funding options.