Axis Bank Plans $700 Million Fundraise Via ECB Swap Facility

Axis Bank has lined up a $700 million dual-tranche loan under the Reserve Bank of India's (RBI) special external commercial borrowing (ECB) swap facility, according to reports, joining a growing list of Indian lenders turning to overseas dollar funding.

How The Deal Is Split

The borrowing is divided across two tenures, three years and five years, with the shorter tranche accounting for roughly $275 million and the remainder raised over five years.

Pricing on the three-year portion has been fixed at 110 basis points over the secured overnight funding rate (SOFR), while the five-year tranche carries a spread of 120 to 125 basis points over SOFR.

Structured As A Club Loan, Syndication To Follow

Rather than approaching the market broadly from the outset, Axis Bank opted for a club loan structure, where a small group of lenders commits to the financing upfront on shared terms before the facility is widened.

The deal is likely to open up to a broader set of banks within the week, depending on how much additional demand emerges. The banks currently in the club have already committed funds, with fresh participants expected to join once syndication begins.

Who's Leading The Deal

Three institutions are anchoring the facility so far. Taiwan's CTBC Bank and Singapore's United Overseas Bank (UOB) have each committed $150 million, while IFC, the World Bank's private-sector lending arm, has put in $100 million.

Part Of A Broader Trend

The transaction adds to a pattern of large Indian banks turning to the offshore dollar loan market to raise capital, a route that has drawn increased interest as lenders look to diversify funding sources beyond domestic borrowing.

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