IDFC First Bank raises $500 million through maiden overseas bond issue

Mumbai: IDFC First Bank has raised $500 million through its maiden international bond issuance, marking its entry into the global debt capital markets and diversifying its funding base.

The three-year fixed-rate senior notes, issued through the bank’s International Financial Services Centre Banking Unit at GIFT City, carry a coupon of 5.625% and mature in 2029. The bonds were offered to investors outside the United States under Regulation S, which allows offshore securities offerings without registration with the US Securities and Exchange Commission.

The issuance follows S&P Global Ratings assigning IDFC First Bank a ‘BBB-’ long-term issuer credit rating with a stable outlook on August 13. The rating places the private-sector lender in the investment-grade category.


Global institutional investors, including BlackRock, Capital Group and AllianceBernstein, participated in the transaction. BofA Securities was the sole placement agent.

“This inaugural transaction is a landmark milestone for IDFC First Bank,” said Sudhanshu Jain, chief financial officer and head of corporate centre. “The successful execution of the transaction, coming shortly after our investment-grade rating from S&P Global Ratings, reflects growing recognition of the strength of our franchise, the resilience of our balance sheet and the progress we have made over the last several years.”

The bond sale provides the lender with a new source of international funding as it seeks to support its long-term expansion. The bank has increased its focus on granular retail deposits in recent years while investing in technology, distribution and customer service, it said.

“This issuance diversifies our funding sources, expands our access to global capital markets and supports our long-term growth ambitions,” Jain said.