Federal Bank to raise $500 million via 5-year GIFT City bonds
Business
Federal Bank is gearing up to raise $500 million by selling 5-year dollar bonds from its IFSC Banking Unit in GIFT City.
The board gave the green light on Friday, and thanks to a tight timeline, the bank is weighing both private and public sale options.
Indian banks tap $9.3B overseas
This is not just about Federal Bank. Indian banks are increasingly looking abroad for funds after recent Reserve Bank of India (RBI) policy changes.
Since June 5, they have raised $9.3 billion through dollar bonds, especially as the RBI ended a discounted swap facility for nonresident deposits.
Union Bank of India is also tapping the market to raise at least $500 million each through three-year and five-year bonds, showing how global money is becoming more important for local lenders.