Axis Bank set to raise $700 million through ECB swap facility
Axis Bank is set to secure seven hundred million dollars through a dedicated external commercial borrowing facility. This loan features two tranches with tenures of three and five years. The arrangement is spearheaded by CTBC Bank from Taiwan and United Overseas Bank from Singapore, with significant contributions from the World Bank's IFC. Additional banks are anticipated to participate as the…
Axis Bank plans to raise $700 million through a dual-tranche external commercial borrowing (ECB) swap facility, according to sources familiar with the agreement. The loan is structured as a club facility, allowing multiple lenders to collaborate on financing terms and tenures. This particular deal will be opened for syndication, potentially attracting additional lenders later.
The loan amounts to $275 million over three years and $425 million over five years. Leading lenders in the club deal include Taiwan's CTBC Bank ($150 million), Singapore's United Overseas Bank ($150 million), and the World Bank's International Finance Corporation ($100 million). The three-year loan is priced 110 basis points above the benchmark SOFR rate, while the five-year loan is priced 120 to 125 basis points above the SOFR rate.
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