Indian financial institutions have raised nearly $9 billion through US dollar bonds this year, exceeding previous records amid a surge in overseas borrowing enabled by new RBI swap facilities and strong global investor demand.
Indian lenders are tapping dollar markets at a pace not seen before, with sales of US-denominated bonds by financial institutions reaching almost $9 billion this year, according to Bloomberg data cited by The Hindu BusinessLine. ICICI Bank’s latest $750 million issue lifted the 2026 tally to $8.85 billion, already above the previous annual record of $7.92 billion set in 2019.
The borrowing rush follows the Reserve Bank of India’s June decision to open a concessional foreign-exchange swap facility for banks and state-backed companies. The scheme, which is meant to ease hedging costs on overseas borrowings and support a softer rupee, offers a fixed annual rate of 1.5 per cent for eligible funding with an average maturity of at least three years and remains open until 31 December.
ICICI Bank’s deal was the largest single-tranche dollar bond sale by an Indian issuer so far this year, Business Standard reported, saying the five-year notes were priced at a spread of 100 basis points over the equivalent US Treasury yield. The transaction drew more than $2.3 billion of orders, underscoring strong demand from global investors for Indian financial credit.
The appetite has spread beyond one bank. Business Standard reported that other large lenders, including HDFC Bank, State Bank of India, Bank of Baroda and Punjab National Bank, are preparing to raise funds before the concession window closes. Citigroup has said the recent wave has been driven by both private- and public-sector banks, while Nomura’s Nicholas Yap told BusinessLine that the surge is tied in part to banks seeking leverage to attract deposits from overseas Indians. He added that issuance could ease later if the immediate funding push fades and hedging costs stay high.
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