Axis Bank to Raise $700 Million Through RBI ECB Swap Facility

Axis Bank Taps RBI’s ECB Swap Window

Axis Bank is set to raise $700 million through a special External Commercial Borrowing (ECB) swap facility backed by the Reserve Bank of India (RBI), according to people familiar with the transaction.

The funding is structured as a dual-tranche loan, comprising approximately $275 million with a three-year maturity, while the remaining amount will be raised through a five-year tranche.

The transaction is being arranged as a club facility, with a group of lenders jointly providing the financing. CTBC Bank of Taiwan and Singapore-based United Overseas Bank (UOB) are each committing $150 million, while the International Finance Corporation (IFC) is contributing $100 million. The deal could subsequently be opened for wider syndication to additional lenders.

Dollar Funding Helps Diversify Axis Bank’s Borrowings

The three-year tranche is reportedly priced at 110 basis points above the Secured Overnight Financing Rate (SOFR), while the five-year facility carries pricing of around 120–125 basis points over SOFR.

The transaction comes as major Indian banks increasingly tap international debt markets to diversify funding sources and manage borrowing costs.

For Axis Bank, access to the RBI’s ECB swap mechanism provides an additional avenue to raise foreign-currency funding while using the associated swap structure to manage foreign-exchange exposure.

The fundraising also comes amid heightened activity in India’s dollar loan market, with banks seeking to take advantage of international liquidity and attractive funding opportunities.

ECB Facility Supports Funding Strategy

The $700-million transaction highlights the growing importance of international capital markets in Indian banking. Diversifying funding across domestic and overseas sources can provide banks with greater flexibility in managing their balance sheets and liquidity.

For Axis Bank, the ECB facility is expected to strengthen its funding base while supporting its broader growth strategy.

The deal also signals continued investor and lender appetite for India’s leading private-sector banks, even as global interest rates, currency movements and funding conditions remain important considerations for financial institutions.