Moody’s rates Axis’ Green Bonds Baa3

KOLKATA: Moody's Investors Service, has assigned a Baa3 rating to Axis Bank Ltd's proposed US Dollar denominated senior unsecured notes, issued under its $5 billion Global Medium-Term Note (GMTN) program.

The draw-down will be carried out from its Dubai International Financial Centre (DIFC) branch, and Axis will use the net proceeds for financing green projects in accordance with, Axis' Green Bond Framework.

The bonds will have a maturity of 5 years. It will be listed on the Singapore and London Stock Exchanges.

According to Moody’s Axis bank is the third-largest private-sector bank in India. Its asset quality is pressured by the challenging macro-economic conditions and exposure to weak corporates. However, Axis retains strong buffers to mitigate the impact. Its strong performance in core profitability and capital has been better than the average of the Indian banking system.