India's ICICI Bank said on Friday its board approved doubling the limit for overseas borrowings to $5 billion, as the country's second-largest private lender ramps up fundraising in international markets.Indian banks have accelerated overseas fundraising after the Reserve Bank of India brought forward the closure of a foreign-exchange swap facility to August 31 from the end of September.Private and state-run lenders were on track to raise at least $5 billion through dollar bonds and loans, bankers told Reuters earlier this week.India bonds hang tight before supply as oil stallsOn Friday morning, Indian government bonds found stability as oil prices leveled off. The market reacted to hawkish minutes from the central bank and a sudden spike in crude prices. Later today, a major debt sale will gauge investor interest in bonds. As retail inflation surpassed the Reserve Bank of India's target, rising oil prices and global yields will influence the upcoming market direction.ICICI Bank has already raised $2.05 billion through dollar debt in the past month, the most among Indian banks since the RBI announced the swap window in early June.Earlier this week, ICICI Bank raised $750 million through five-year dollar bonds, its third dollar fundraising in a month, two merchant bankers told Reuters on Tuesday.
ICICI Bank doubles borrowing from overseas markets to $5 billion
ICICI Bank has taken a significant step by doubling its overseas borrowing limit to five billion dollars. This strategic decision enhances the bank's ability to tap into international fundraising avenues. Following the closure of a previous swap facility, Indian banks are ramping up efforts, eyeing to collectively secure at least five billion dollars through loans and bonds. So far, ICICI has successfully raised over two billion dollars in dollar-denominated debt.
TL;DRAI
ICICI Bank doubled overseas borrowing to $5B, raising $2.05B in dollar debt in one month after RBI accelerated forex-swap closure to August 31. Tech leaders outsourcing to India should expect rising vendor costs and currency volatility affecting cross-border transactions.
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