Kotak Mahindra Bank taps HSBC and CTBC for $600-million overseas loan

Kotak Mahindra Bank is arranging a $600 million overseas loan from HSBC and CTBC, likely priced at more than 100 basis points above the three-month SOFR, qualifying for the RBI's special swap facility. The funds will be used to provide leverage to overseas clients making FCNR(B) deposits with the bank, as the RBI absorbs the entire currency hedging cost on fresh three-to-five-year FCNR(B) deposits. Separately, Bank of India raised a $400 million three-year tranche at 97 bps above SOFR and a $200 million five-year tranche at 110 bps above SOFR for the same purpose.