RBL Bank board approves plan to raise up to $1 billion through overseas bonds

Private lender RBL Bank on Monday said its board has approved a proposal to mobilise up to $1 billion from overseas investors through the issuance of bonds and other debt securities.

The bank said in a stock exchange filing that its board approved the establishment of a Euro Medium Term Note (EMTN) Programme in accordance with Regulation S of the US Securities Act, 1933. The programme will be subject to the required regulatory, statutory and other approvals.

Under the programme, RBL Bank will be able to issue foreign currency bonds, notes or other debt securities of up to $1 billion from time to time through one or more transactions, depending on market conditions and regulatory requirements.

The lender further said the proposed fund-raising will be undertaken through permissible modes under the EMTN Programme and in accordance with applicable laws.

The board also approved the delegation of certain powers and authorities to the bank's Borrowing Committee. The committee will be responsible for deciding and undertaking necessary actions related to the EMTN Programme and issuance of the securities.

Emirates NBD acquired 60% stake in RBL Bank

The move comes months after Emirates NBD Bank completed the acquisition of a majority stake in RBL Bank through a primary infusion of approximately $2.75 billion, or around Rs 26,000 crore, in June.

The transaction was completed through a preferential issue of shares, following which the Emirates NBD acquired a 60% stake in the expanded share capital of RBL Bank.

The largest foreign direct investment in India's banking sector 

The transaction was described as the largest foreign direct investment in India's banking sector and the largest equity fund raise in the sector. It also marked the first acquisition of a majority interest in a profitable Indian bank by a foreign bank.

As part of the transaction, Emirates NBD also completed a mandatory open offer to the public shareholders of RBL Bank in accordance with applicable regulations.

The latest bond programme will provide RBL Bank with an additional avenue to raise funds from international markets, subject to the market conditions and the necessary regulatory approvals.