Indian banks raise offshore debt amid sustained global investor demand

ICICI Bank and Kotak Mahindra Bank have issued $1 billion and $650 million in offshore bonds respectively, highlighting continued foreign investor interest in Indian lenders’ funding strategies.

ICICI Bank and Kotak Mahindra Bank have tapped the offshore debt market almost simultaneously, underscoring steady demand for Indian lenders in foreign currency funding. ICICI Bank priced $1 billion of five-year senior unsecured fixed-rate notes due in 2031 at 5.410 per cent, while Kotak Mahindra Bank allotted $650 million of senior notes maturing in 2031 at a coupon of 5.478 per cent.

According to ICICI Bank, the notes form part of its $7.5 billion Global Medium Term Note Programme and were raised through its IFSC Banking Unit. Market reports said this was the lender’s fourth offshore debt tranche in about a month, lifting its cumulative fundraising through the swap window to $3.05 billion. The bank said the net proceeds will be used for general corporate purposes, in line with regulatory guidelines.

Kotak Mahindra Bank said its issue sits within a $1 billion euro medium-term note programme established under Regulation S of the US Securities Act of 1933. Separate market reports said the notes carry a BBB rating from S&P Global Ratings, mature on 24 August 2031 and pay interest semi-annually. Another report said the deal tightened from initial guidance after strong demand from global institutional investors.

The two transactions reflect how major Indian banks are continuing to diversify funding sources through the GIFT City and offshore bond markets. S&P Global Ratings said Kotak’s notes are direct, unconditional, unsubordinated and unsecured obligations of the bank, while ICICI’s paper is also intended to support broader corporate funding needs within its regulatory framework.