India's Bank of Maharashtra raises $500 million in debut dollar debt, tightens pricing

Bank of Maharashtra

18/09/2026 07:12

By Dharamraj Dhutia
MUMBAI, Sept 18 (Reuters) - India's state-run Bank of Maharashtra's BMBK.NS drew strong demand for its inaugural U.S. dollar-denominated bonds, allowing it to price the five-year debt at a narrower spread compared with its initial guidance, two bankers said on Friday.
Here are a few details: 
The bank raised $500 million through the debt sale at a coupon of 6.1120% payable on a semi-annual basis, it said in a notice to stock exchanges.
The issue was sold at a spread of 130 basis points over U.S. Treasury, a contraction of 25 basis points as compared to the initial price guidance of 155 bps.
The funds will be raised under the central bank's concessional swap window, which lowers the cost of hedging against adverse currency moves.
The bonds are rated BBB by S&P and BBB– by Fitch Ratings, and the proceeds will be used to meet funding requirements at the bank's India head office and foreign branches, and for general corporate purposes.
Including this deal, Indian banks have now raised $13 billion through dollar bonds since June, when the central bank announced the swap window.
State Bank of India, Bank of Baroda, Canara Bank and the Union Bank of India are the other state-run lenders that have tapped the dollar debt market in the first nine months of 2026.

(Reporting by Dharamraj Dhutia; Editing by Harikrishnan Nair)
((DharamrajLalit.Dhutia@thomsonreuters.com;))