Mumbai, Aug 21: ICICI Bank has doubled its overseas borrowing limit to $5 billion, strengthening its ability to raise funds in international markets amid increased demand among Indian lenders for foreign currency financing.
The bank’s board approved the higher borrowing ceiling on August 21 as lenders accelerate fundraising through overseas debt markets following the Reserve Bank of India’s decision to end its foreign exchange swap facility earlier than originally scheduled.
The RBI has brought forward the closure of the facility to August 31 from the previously planned end September deadline. The change has encouraged Indian banks to explore alternative sources of foreign currency liquidity.
ICICI Bank has already been active in international debt markets. It raised $2.05 billion through dollar-denominated debt over the past month, making it the largest such fundraising by an Indian bank during the period.
The lender also recently secured $750 million through a five-year dollar bond, marking its third international fundraising exercise within a month.
The expanded borrowing ceiling gives ICICI Bank greater flexibility to tap global markets as funding conditions evolve. It also comes at a time when Indian banks are seeking to strengthen their foreign-currency resources amid changing global financial conditions.
The move highlights the growing role of international debt markets in supporting the funding requirements of Indian financial institutions and reflects lenders’ efforts to diversify their sources of capital.
