Axis Bank Raises $800 Million Through Dual-Tranche Dollar Bond Offering

Axis Bank has raised $800 million through a dual-tranche U.S. dollar bond issue under its Global Medium Term Note (GMTN) programme, according to a stock exchange filing. The fundraising includes perpetual Additional Tier-1 bonds and five-year senior unsecured notes.

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The private sector lender issued $500 million worth of Additional Tier-1 (AT1) capital notes carrying a coupon of 6.875% per annum. The interest will be paid semi-annually, while the securities are perpetual and do not have a fixed maturity.

The bank also raised $300 million through senior unsecured fixed-rate notes with a tenor of five years. The notes carry a coupon of 5.348% per annum and are scheduled to mature on June 30, 2031.
Issue Scheduled For June 30

Axis Bank said both tranches will be issued on June 30, 2026. The securities will be listed on the Global Securities Market of India International Exchange (India INX) and the Debt Securities Market of NSE IFSC Ltd.
The lender said the offering is being executed through a syndicated issuance process and clarified that no charge or security has been created on its assets in connection with the bond issue.

RBI Window Encourages Offshore Borrowing

Axis Bank joins a growing list of Indian financial institutions tapping overseas markets after the Reserve Bank of India introduced a concessional swap facility for overseas foreign currency borrowings.

Earlier, HDFC Bank raised $750 million through a five-year senior unsecured bond issue from its International Financial Services Centre Banking Unit at GIFT City. The bonds carry a fixed coupon of 5.067% and mature on June 24, 2031.

State-owned Power Finance Corporation also raised $300 million through five-year bonds priced at 105 basis points above U.S. Treasury yields.

Several lenders, including State Bank of India, Bank of India and Bank of Baroda, are also evaluating overseas fundraising opportunities. Non-banking financial institutions such as REC, Hudco and NaBFID have been exploring similar routes.

Details Of RBI’s Swap Facility

The RBI introduced the concessional hedging mechanism earlier this month to attract foreign capital and improve liquidity conditions. Under the scheme, the central bank offers swaps at a fixed rate of 1.5% annually, compounded semi-annually, for eligible overseas foreign currency borrowings with a minimum maturity of three years.

The facility will remain available until December 31, 2026. The latest issuance strengthens Axis Bank’s capital position while reflecting increasing interest among Indian lenders in raising funds overseas under the RBI’s special framework.