Axis Bank set to raise $700 million through ECB swap facility

By

, ET BureauLast Updated: Aug 26, 2026, 06:33:00 AM IST

Synopsis

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 syndication phase unfolds.

Mumbai: Axis Bank is raising a total of $700 million through a dual-tranche three-year and five-year loan under the Reserve Bank of India's (RBI) special external commercial borrowing (ECB) swap facility, people familiar with the details said.

The loan deal is structured as a club facility in which a few lenders come together to offer a collaborative financing arrangement at jointly agreed terms and tenures.

"In this case depending on the demand, the deal will be opened for syndication where more lenders could join. The syndication to a wider set of banks will likely start as soon as this week," said a person familiar with the details.

The total size of the loan deal is $700 million split over three and five years. Axis is raising about $275 million in the three year tenure with the rest being raised in the five year bucket.

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An Axis Bank spokesperson declined to comment.

The club loan is led by Taiwan's CTBC Bank ($150 mln), Singapore's United Overseas Bank ($150 mln), together with World Bank arm IFC ($100 mln).

ET could not ascertain the names of all lenders in the deal.

"The three-year loan is priced at 110 basis points above the benchmark secured overnight funding rate (SOFR), while the five-year loan is priced at 120 to 125 basis points above the SOFR rate. The banks in the club loan deal have already agreed to finance the transaction and more banks will join at the syndication stage," said the person cited above.

Large Indian banks have been tapping the dollar loan market to raise funds.

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