Bajaj Finance Plans $500 Million Offshore Borrowing Amid Stricter Domestic Regulations

Bajaj Finance Ltd., India's largest non-banking finance company by market value, is planning to borrow up to $500 million offshore.
The company is negotiating terms with at least four foreign banks, with the debt's tenor ranging from three to five years and pricing linked to the Secured Overnight Financing Rate.
Funds will be raised under the Reserve Bank of India's external commercial borrowing route, which caps the interest rate at 500 basis points over the benchmark rate.
A spokesperson for Bajaj Finance declined to comment on the transaction.
Local shadow financiers are turning to global credit markets after RBI's new regulations made it difficult to raise domestic bank loans.