India's state-run Bank of Maharashtra plans debut dollar debt sale, bankers say

Bank of Maharashtra

17/09/2026 07:20

By Dharamraj Dhutia
MUMBAI, Sept 17 (Reuters) - India's state-run Bank of Maharashtra BMBK.NS aims to raise up to $500 million through its first-ever U.S. dollar-denominated bonds with a five-year maturity and has started marketing the issue to offshore investors, two merchant bankers said on Thursday. 
Here are a few details: 
The state-run lender has set initial price guidance of 155 basis points over U.S. Treasury yields.
Traders anticipate a tightening of around 20-25 bps from the initial guidance.
The funds will be raised under the central bank's concessional swap window, which lowers the cost of hedging against adverse currency moves. 
The bankers requested anonymity as they are not authorised to speak to the media, while Bank of Maharashtra did not reply to a Reuters email seeking comment.
Last week, Reuters reported that Bank of Maharashtra and Canara Bank were looking to raise $500 million each through dollar debt in September.
The bonds will be rated BBB by S&P and BBB– by Fitch Ratings, in line with Bank of Maharashtra's credit ratings.
The proceeds will be used to meet funding requirements at the bank's India head office and foreign branches, and for general corporate purposes.
Indian banks have raised $12.5 billion through dollar bonds since June, when the central bank announced the swap window.
State Bank of India, Bank of Baroda and the Union Bank of India are the other state-run lenders that have tapped the dollar debt market in 2026.


 (Reporting by Dharamraj Dhutia; Editing by Eileen Soreng)
 ((Dharamraj.Dhutia@thomsonreuters.com;))