Politics · India Bureau
RBL Bank clears $1 billion overseas bond issuance programme
RBL Bank's board has approved plans to raise up to $1 billion from international investors through foreign currency bonds. The private lender will establish a Euro Medium Term Note Programme to facilitate the issuance of debt securities across multiple transactions.
LSN India ·
RBL Bank said on Monday that its board of directors has greenlit the mobilisation of up to $1 billion from overseas investors through a bond issuance programme. The approval covers the establishment of a Euro Medium Term Note (EMTN) Programme in compliance with Regulation S of the US Securities Act, 1933, pending regulatory and statutory approvals.
The board has authorised the bank to issue foreign currency bonds, notes, and other debt securities up to the approved $1 billion limit. These issuances can be conducted over time through one or more transactions, subject to market conditions and regulatory compliance requirements, according to a stock exchange filing by the bank.
The private sector lender has also delegated certain powers to its Borrowing Committee to oversee implementation of the EMTN Programme. The committee will be empowered to take all necessary decisions and actions related to the bond issuance initiative and associated regulatory requirements.
The move comes as Indian banks increasingly tap international capital markets to bolster their capital bases and fund expansion. The EMTN structure provides RBL Bank with flexibility to access overseas funding across different denominations and tenors as per market opportunities.