RBL Bank Board Approves $1 Billion EMTN Programme for Foreign Currency Bonds

RBL Bank Q1 Business Update: Advances grow 21% to ₹1.17 lakh crore; deposits rise 11% YoY


RBL Bank’s board on Monday (September 7) approved the setting up of a $1 billion Euro Medium Term Note (EMTN) programme, under which the private sector lender may raise funds through foreign-currency bonds, notes or other debt securities.

The programme has been established under Regulation S of the US Securities Act, 1933, subject to the required regulatory and statutory approvals, the bank said in a stock exchange filing.

Under the programme, RBL Bank can issue securities worth up to $1 billion through one or more transactions from time to time. Any such issuance will depend on market conditions and applicable regulatory requirements.

The bank said the securities will not be offered or sold to investors in India.

RBL Bank’s board has also authorised its Borrowing Committee to take the necessary decisions and actions related to the EMTN programme and future issuances.

The board meeting was held on September 7 and lasted 24 minutes, according to the filing.

Separately, global brokerage firm Citi retained a ‘Buy’ rating on RBL Bank’s stock with a price target of ₹440 per share. The target implies an upside of around 13% from the stock’s closing price of ₹388.80 cited by the brokerage.Citi said RBL Bank has leveraged its promoter’s relationship with Emirates NBD to tap a large pool of FCNR(B) deposits from the UAE corridor.

According to the brokerage, the bank has mobilised gross FCNR(B) deposits of $3.4 billion, or around ₹32,472 crore, through the Reserve Bank of India’s swap facility.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *