Bank of Maharashtra Plans First-Ever $500 Million Dollar Bond Issue to Raise Funds from Global Investors
India’s state-run Bank of Maharashtra is planning to raise up to $500 million through its first-ever US dollar-denominated bond issue. The bonds will have a five-year maturity, and the bank has started approaching international investors, according to two merchant bankers.
Initial Pricing for the Bonds
The bank has set an initial price guidance of 155 basis points above US Treasury yields. Market traders expect the final pricing to be tightened by around 20 to 25 basis points from the initial guidance.
Funds to Be Raised Through Swap Window
The money will be raised under the Reserve Bank of India’s concessional swap window. This facility helps banks reduce the cost of protecting themselves against changes in currency exchange rates.
Bank of Maharashtra and Canara Bank Planning Dollar Debt
Reuters reported last week that Bank of Maharashtra and Canara Bank were planning to raise around $500 million each through dollar-denominated bonds in September. The proposed issue will give Bank of Maharashtra access to international debt markets for the first time.
The money raised through the bond issue will be used to meet funding requirements at the bank’s headquarters in India and its foreign branches. The funds will also be used for general corporate purposes.
Indian Banks Raise $12.5 Billion Through Dollar Bonds
Indian banks have raised around $12.5 billion through US dollar-denominated bonds since June. The increase came after the Reserve Bank of India introduced the concessional swap window.
Several other state-run banks have also entered the international dollar debt market in 2026. These include State Bank of India, Bank of Baroda and Union Bank of India.
