Indian banks prepare overseas dollar bonds to repay FCNR(B) loans
RBL Bank and Bank of Maharashtra are gearing up to sell dollar bonds overseas, while UCO Bank and Bank of India are also preparing for similar overseas fundraising initiatives.
Why? They need to pay back short-term loans they took for FCNR(B) deposits and fix some mismatches in their finances after the FCNR(B) window closed on August 31.
RBL, BoM seek $300 million-$500 million bonds
RBL and BoM are already talking to investors about five-year bonds, each hoping to raise $300 million to $500 million. Both have set up new programs.
Meanwhile, UCO Bank and BoI got the green light from their boards but are still early in the process. BoI is even heading to Hong Kong this week to see if global investors are interested.
It's all part of a bigger push by Indian banks to find new ways of raising money and keep things running smoothly.