The flurry of offshore activity reflects the continued appetite among Indian banks for international capital markets
Three major Indian banks, Axis Bank, Kotak Mahindra Bank, and Union Bank of India, made significant moves in the international debt markets on Monday and Tuesday, collectively involving $1.85 billion in offshore bond activity, even as their shares traded mixed on the NSE on Tuesday.
Axis Bank said it will redeem its $600 million 4.10 per cent Additional Tier 1 (AT1) notes in full on September 8, 2026, the First Call Date, at par or 100 per cent of the principal, plus accrued and unpaid interest. The notes, issued on September 8, 2021, under an Offering Circular dated August 19, 2021, carry ISINs USY1009XAA73 and US05464XAA37. The private sector lender disclosed on August 24 that it had obtained prior approval from the Reserve Bank of India’s Department of Banking Regulation on July 31, 2026, and had demonstrated to the RBI’s satisfaction that its capital position would remain well above minimum requirements post-redemption. The bank’s shares closed at ₹1,235 on Tuesday, down 0.08 per cent, with a market capitalisation of approximately ₹3.84 lakh crore.
Kotak Mahindra Bank allotted $650 million in 5.478 per cent senior unsecured notes due August 24, 2031, under its $1 billion Euro Medium Term Note (EMTN) programme, on August 24. The five-year notes, rated BBB by S&P Global Ratings and issued under Regulation S of the U.S. Securities Act of 1933, will be listed on India International Exchange (IFSC) Ltd and NSE IFSC Ltd. Coupon payments are scheduled semi-annually on February 24 and August 24 each year, with principal redeemable at par on maturity. The bank’s stock closed largely flat at ₹401.60, up 0.04 per cent, valuing the bank at around ₹3.99 lakh crore on NSE.
Union Bank of India disclosed the issuance of a dual-tranche $600 million offering of USD-denominated senior unsecured notes through its DIFC Branch in Dubai, filed with exchanges on August 24 and 25. The offering comprises two tranches of $300 million each, a three-year note maturing August 28, 2029, carrying a coupon of 5.230 per cent, and a five-year note maturing August 28, 2031, at 5.417 per cent, both paying semi-annually from February 28, 2027. The notes are expected to be rated BBB/BBB- by S&P Global and Fitch, respectively, and will be listed on NSE IFSC Ltd. Proceeds will fund the DIFC Branch’s operations and general corporate purposes. Union Bank shares surged 1.84 per cent to close at ₹186.98, making it the day’s standout performer among the three, with a market cap of approximately ₹1.43 lakh crore.
The flurry of offshore activity reflects continued appetite among Indian banks for international capital markets to diversify funding, manage liability profiles, and support growth, even as domestic equity markets remain range-bound.
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