Bank of Maharashtra plans to raise $500 million through its first-ever U.S. dollar-denominated bond issuance. Merchant bankers expect the state-run lender to complete the sale in September.
The bank will likely offer three-year or five-year papers. It intends to use the central bank’s concessional swap window to reduce currency hedging costs.
Fitch Ratings assigned a BBB-minus rating to the bank’s $500 million medium-term note programme.
Proceeds will fund the bank's Indian head office and foreign branches. The lender also designated funds for general corporate purposes.