IDFC First Bank has raised $500 million through its maiden international bond issuance. The three-year fixed-rate senior notes, issued through the bank’s International Financial Services Centre Banking Unit at GIFT City, carry a fixed coupon rate of 5.625% and mature in 2029.
The bonds were offered to investors outside the US under Regulation S, which allows offshore securities offerings without registration with the US Securities and Exchange Commission, according to a release. It marked the bank’s diversification of funding sources as the lender expands access to global debt capital markets.
The transaction follows the assignment of an investment-grade ‘BBB-’ long-term issuer credit rating with a ‘stable’ outlook by S&P Global Ratings on August 13. The rating places the private-sector lender in the investment-grade category.
The transaction was anchored by marquee global institutional investors, including BlackRock, Capital Group and Alliance Bernstein. Their participation reflects strong investor confidence in the bank’s financial strength, growing franchise, prudent risk management and long-term prospects, the release said.
BofA Securities acted as the sole placement agent for the transaction.
“This inaugural transaction is a landmark milestone for IDFC First Bank. We are delighted to see strong participation from some of the world’s leading institutional investors in our maiden international bond issuance,” said Sudhanshu Jain, chief financial officer and head – corporate centre, IDFC First Bank.
Over the last few years, the lender has strengthened its balance sheet, built a granular retail deposit franchise, improved profitability and maintained asset quality, while continuing to invest in technology, distribution and customer service.