Indian financial institutions set record with $8 billion U.S.-dollar bonds
Indian financial institutions have set a new record by raising $8 billion through US dollar bonds so far this year, edging past their previous best from 2019.
This big jump comes after the Reserve Bank of India (RBI) introduced a special swap facility in June to make borrowing from abroad cheaper.
Heavyweights like State Bank of India, ICICI Bank, and Axis Bank were especially active this August.
RBI scheme fixes borrowing at 1.5%
Thanks to the RBI's scheme, which fixes borrowing costs at just 1.5% for at least three years, banks are saving big compared to usual market rates.
That's why about two-thirds of these new bonds came from financial institutions, with both private and public banks joining in.
The strong demand from international investors shows growing trust in Indian banks, and more lenders like Kotak Mahindra and Yes Bank are now eyeing similar deals before the offer ends this December.