Axis Bank has successfully raised $800 million through a dual-tranche US dollar bond issuance under its Global Medium Term Note (GMTN) programme, further strengthening its capital position and diversifying its funding sources. The fundraising comprises $500 million in Additional Tier 1 (AT1) capital notes and $300 million in senior unsecured notes, according to a regulatory filing by the bank.
The $500 million AT1 notes have been issued at a coupon rate of 6.875 per cent per annum, with interest payable semi-annually. These securities are perpetual in nature and do not carry a fixed maturity date, making them an important instrument for enhancing the bank’s capital base.
In addition, Axis Bank raised $300 million through five-year senior unsecured fixed-rate notes carrying a coupon of 5.348 per cent per annum. The notes, issued as Series 10, Tranche 1, are scheduled to mature on June 30, 2031, with interest payments to be made semi-annually.
The bank stated that both tranches are expected to 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 issuance is being carried out through a syndicated distribution process.
Axis Bank also clarified that no charge or security has been created on any of its assets in connection with the bond issuance.
The lender joins other major financial institutions, including HDFC Bank and Power Finance Corporation, in accessing overseas debt markets. Industry observers note that Indian banks are increasingly taking advantage of the Reserve Bank of India’s concessional hedging framework for foreign borrowings to raise funds at competitive rates.
