RBL Bank Plans $1 Billion Overseas Debt Programme, Board Clears Foreign Currency Fundraising

Mumbai: RBL Bank’s board has approved the creation of a Euro Medium Term Note programme that will allow the private lender to raise up to USD 1 billion through foreign currency debt instruments.

The fundraising may be carried out in one or more transactions in the future, depending on market conditions and compliance with applicable regulations, the bank said in an exchange filing dated September 7.

Overseas funding route

Under the programme, RBL Bank may issue foreign currency bonds, notes or other eligible debt securities through modes permitted under applicable laws when suitable opportunities become available.

The EMTN programme will be established in accordance with Regulation S of the US Securities Act, 1933. Its implementation will remain subject to regulatory, statutory and other approvals that may be required.

Such programmes generally provide issuers with a flexible platform to access international debt markets in multiple tranches. However, the filing did not disclose the timing, pricing, tenure, currency mix or intended use of the proposed borrowings.

No offer in India

RBL Bank clarified that the securities issued under the programme will not be offered or sold to any investor in India.

The board has also delegated certain powers and authorities to the bank’s Borrowing Committee. The committee will decide and undertake the actions necessary to establish the EMTN programme and issue securities under it.

The approval enables the bank to consider overseas fundraising opportunities, but does not mean the entire USD 1 billion will be raised immediately. Any issuance will depend on market conditions, regulatory compliance and the bank’s funding requirements at the relevant time.

RBL Bank informed both BSE and the National Stock Exchange about the decision under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Disclaimer: This article is based on information disclosed by RBL Bank in its exchange filing and is intended for informational purposes.