Punjab National Bank raises $1 billion under RBI special swap
Punjab National Bank (PNB) is raising a $1 billion loan underwritten by Mashreq Bank of the United Arab Emirates and CTBC of Taiwan, and it will be syndicated to other global financiers.
This is PNB's first time using the Reserve Bank of India's (RBI) special swap scheme, and the money will help make its foreign currency accounts more attractive for people living abroad.
SOFR linked loan up to 125bps
The loan will be shared among international banks, with interest rates set up to 125 basis points above the secured overnight funding rate (SOFR).
Thanks to the RBI's swap facility, banks like PNB can offer better deals to overseas customers without worrying about extra hedging costs.
State Bank of India (SBI) and HDFC Bank were seeking to raise $1.7 billion between them through this route for similar goals.