PNB to raise $500m-$1bn via 1st U.S.-dollar 5-year bonds
Punjab National Bank (PNB) is gearing up to raise at least $500 million, and possibly up to $1 billion, by selling its first U.S.-dollar bonds for a five-year term.
The move was supposed to tap the market in late September or early October, but may have delayed the exercise due to a sudden spike in Treasury yields, but now PNB is taking advantage of the Reserve Bank of India's discounted swap window to make overseas fundraising smoother.
RBI discounted-swap window open until December
This RBI "discounted swap window" let banks like PNB raise money abroad with less currency risk, but it was only open through the end of December.
Another state-run lender, Canara Bank, were also lining up for it.
To prepare for this big step, PNB set up a $1.5 billion note program and earned investment-grade ratings from Moody's and Fitch, showing global investors they meant business.