The bank, through its IFSC Banking Unit at GIFT City, priced three-year fixed-rate senior notes due 2029 at a coupon of 5.625%. The notes were issued to investors outside the US under the Regulation S framework.
The transaction follows S&P Global Ratings assigning the bank an investment-grade long-term issuer credit rating of BBB- with a stable outlook on August 13.
The bond issue was placed with global institutional investors, including BlackRock, Capital Group and AllianceBernstein, according to the bank. BofA Securities acted as the sole placement agent.
The issuance gives IDFC FIRST Bank an additional source of funding and marks its entry into the international bond market. It also comes as Indian banks have increasingly tapped overseas debt markets to diversify their funding sources.
The bank said the proceeds would support its broader funding requirements and long-term growth. It has been expanding its retail deposit base and lending operations in recent years.
“This issuance diversifies our funding sources and expands our access to global capital markets,” Sudhanshu Jain, chief financial officer and head of corporate centre at IDFC FIRST Bank, said in a statement.The bank did not disclose further details on the use of proceeds beyond its stated funding requirements.
