Bajaj Seeks $500M Loan: India’s Top Shadow Bank
Bajaj Finance Ltd. is looking to secure up to $500 million from international markets to bolster its financial standing. The company is currently in discussions with several foreign banks to finalize the loan terms, which will be priced against the Secured Overnight Financing Rate. This strategic move follows recent RBI regulations that have constrained borrowing options for shadow banks within India, prompting Bajaj Finance to explore global avenues for funding and growth.
India’s largest non-banking finance company by market value is planning to borrow up to $500 million offshore, people familiar with the matter said, the latest shadow financier to seek global funds after stricter regulations limited domestic options.
India's largest non-banking finance company by market value, Bajaj Finance Ltd., is embarking on a significant move to secure up to $500 million in funding from international markets. This strategic decision comes amidst a backdrop of increasingly stringent domestic regulations that have constrained borrowing options for shadow financiers.
With the Reserve Bank of India's recent measures tightening the reins on local borrowing, Bajaj Finance is turning to global sources to meet its financing needs. The company is actively negotiating with several foreign banks to finalize the terms of the loan, which will be benchmarked against the Secured Overnight Financing Rate (SOFR). This move underscores the company's proactive approach to navigating the evolving financial landscape and maintaining its growth trajectory.
As the latest player to seek offshore funding, Bajaj Finance joins a growing list of shadow banking entities exploring international avenues for capital. This development highlights the broader trend of Indian financial institutions adapting to regulatory changes by diversifying their funding sources. By tapping into global markets, Bajaj Finance aims to bolster its financial stability and continue its expansion amidst a challenging regulatory environment.
What's Your Reaction?
