Bank of Maharashtra Prices USD 500 Million Senior Notes

Issue Size: USD 500 million senior unsecured fixed-rate notes.

Coupon: 6.112% per annum with a five-year maturity.

Reader Takeaway: Strengthens overseas funding access, while interest cost and fund deployment will influence future profitability.

What just happened

Bank of Maharashtra has announced the pricing of its USD 500 million senior unsecured fixed-rate notes under its Medium Term Note (MTN) programme.

The notes carry a fixed coupon of 6.112% per annum, payable semi-annually, and have a maturity of five years.

The issuance is scheduled for September 24, 2026.

Why this matters

The transaction gives the bank access to long-term overseas funding, helping diversify its borrowing sources beyond domestic markets.

The notes are being issued through the bank's IFSC Banking Unit at GIFT City under Regulation S of the U.S. Securities Act, 1933.

What changes now

Following issuance, the notes are expected to be listed on India INX and NSE IX.

The proceeds will become part of the bank's overall funding resources and can support balance sheet growth in line with applicable regulations and internal capital planning.

Risks to watch

Investors should monitor:

• The impact of the 6.112% funding cost on borrowing expenses.
• Deployment of the overseas proceeds.
• Changes in the bank's funding mix and balance sheet profile.
• Future disclosures on the utilisation of the raised funds.

What to track next

The next milestone is the scheduled issuance on September 24, 2026, followed by listing on India INX and NSE IX. Investors will also watch future financial results to assess how the offshore borrowing affects interest costs, liquidity and overall funding strategy.