Axis Bank has priced $300 million of senior notes due 2029, as part of its ongoing efforts to secure cheaper dollar liquidity through offshore markets, amid conflicting reports on recent bond issuance totals.
Axis Bank has priced $300 million of senior notes due November 21, 2029, at 5.179% a year, according to the bank’s announcement. The issue is part of the lender’s $5 billion global medium-term note programme and is set to be listed on the India International Exchange in Gujarat’s international financial services centre and on NSE IFSC.
The bond sale comes as Indian banks look to raise dollar funding to support non-resident Indian customers placing fresh foreign currency non-resident deposits, or FCNR-B deposits, under a concessional swap facility offered by the Reserve Bank of India. That arrangement has helped lenders attract foreign-currency liabilities while offering depositors a way to earn on dollar balances in India.
There is, however, a mismatch in the market’s early reporting of the transaction. Business Standard and other market trackers said Axis Bank completed an $800 million dual-tranche dollar bond sale in June, including $500 million of additional Tier 1 notes and $300 million of senior notes priced at 5.348%. The latest filing from The Hindu BusinessLine gives a slightly different coupon of 5.179% for the senior tranche, suggesting the bank may have updated the final terms or that the first reports referred to indicative pricing.
Additional Tier 1 notes, or AT1 securities, are perpetual bank capital instruments that can absorb losses in stress situations, while senior notes rank ahead of them in the repayment hierarchy. The bond proceeds are expected to support Axis Bank’s broader funding and capital management needs as Indian lenders continue to tap offshore markets for cheaper dollar liquidity.
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