The planned fundraising follows a successful $750 million dollar-bond sale by HDFC Bank earlier this week at a spread of 90 basis points over benchmark US Treasury yields.
Under the RBI scheme announced on 5 June, the central bank will provide a concessional forex swap facility for ECBs raised by PSUs and Indian banks through 31 December, for tenors of up to five years. The facility effectively absorbs the full cost of hedging dollar exposure, allowing borrowers to access overseas funds at lower all-in costs.
