ICICI Bank has announced that its board of directors has approved doubling the limit for overseas borrowings to $5 billion. As India's second-largest private sector lender, the bank is actively scaling up its fundraising efforts in international markets.
This development follows a broader trend among Indian financial institutions. Private and state-run lenders have accelerated their overseas fundraising activities after the Reserve Bank of India (RBI) brought forward the closure of a foreign-exchange swap facility from the end of September to August 31.
Market participants and bankers indicate that Indian lenders were collectively on track to raise at least $5 billion through dollar bonds and loans following the regulatory change. ICICI Bank has emerged as the most active institution in this regard, having already raised $2.05 billion through dollar debt over the past month since the RBI announced the swap window in early June.
As part of this fundraising drive, ICICI Bank recently raised $750 million through five-year dollar bonds. According to merchant bankers, this marked the institution's third major dollar fundraising transaction within a single month.
"The decision by ICICI Bank to double its overseas borrowing limit to $5 billion highlights how financial institutions quickly adapt to regulatory shifts, such as the earlier closure of the RBI's foreign-exchange swap facility. By swiftly tapping international markets and raising significant capital through dollar debt, major banks are proactively managing liquidity and optimizing their funding strategies in response to evolving macroeconomic timelines." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
