Banks line up $2.5-billion debt sales using RBI swap

AT LEAST FOUR lenders including the State Bank of India are preparing to raise about $2.5 billion selling bonds in the coming weeks, tapping a Reserve Bank of India facility that makes it cheaper to borrow dollars, according to people familiar with the matter.

- SAIKAT DAS & BHASKAR DUTTA

State Bank may raise as much as $1 billion, while Axis Bank, Bank of Baroda and Power Finance Corporation plan to raise at least $500 million, said the people, who asked not to be identified because the information is private. Most of the borrowing will be for five years, the people said.

Some of the bond sales could be launched as early as next week, they said.