1 week ago
Three Indian Banks Conduct $1.85 Billion Offshore Bond Activity
Three large Indian banks made important moves in overseas bond markets.
Axis Bank plans to pay back $600 million of special bank notes in 2026.
Kotak Mahindra Bank borrowed $650 million through bonds that mature in 2031.
Union Bank of India borrowed $600 million through two sets of bonds.
These bonds pay investors interest over time.
The banks used international markets to obtain or manage funding.
Their shares moved differently on the National Stock Exchange.
Union Bank’s shares rose the most among the three banks.
Axis Bank will redeem its $600 million 4.10% Additional Tier 1 notes on September 8, 2026, subject to its disclosed approvals and capital assessment.
Kotak Mahindra Bank allotted $650 million of five-year senior unsecured notes carrying a 5.478% coupon under its Euro Medium Term Note programme.
Union Bank of India issued two $300 million senior unsecured note tranches, maturing in 2029 and 2031, with coupons of 5.230% and 5.417%.
The combined offshore bond activity involved $1.85 billion, while the banks’ shares traded differently on the National Stock Exchange.
The activity reflects Indian banks’ use of international capital markets to diversify funding, manage liabilities and support growth.
- Who
- Axis Bank, Kotak Mahindra Bank and Union Bank of India.
- What
- The banks conducted $1.85 billion in offshore bond activity, including new issuances by Kotak Mahindra Bank and Union Bank of India and a planned redemption by Axis Bank.
- Where
- The activity took place in international debt markets, including through Union Bank of India’s DIFC Branch in Dubai; some notes will be listed on India International Exchange and NSE IFSC.
- When
- The disclosures and issuances were reported on August 24 and 25, 2026; Axis Bank’s redemption is scheduled for September 8, 2026.
- Why
- The activity supports funding diversification, liability management and growth, while Union Bank of India said its proceeds would fund branch operations and general corporate purposes.
Key facts
- Combined activity
- $1.85 billion in offshore bond activity
- Axis Bank
- $600 million of 4.10% Additional Tier 1 notes planned for redemption on September 8, 2026
- Kotak Mahindra Bank
- $650 million of 5.478% senior unsecured notes due August 24, 2031
- Union Bank of India
- Two $300 million senior unsecured note tranches, maturing in 2029 and 2031
- Union Bank coupons
- 5.230% for the three-year tranche and 5.417% for the five-year tranche
- Stock performance
- Axis Bank fell 0.08%, Kotak Mahindra Bank rose 0.04% and Union Bank of India rose 1.84% on Tuesday
- Ratings
- Kotak Mahindra Bank’s notes were rated BBB by S&P Global Ratings; Union Bank’s notes were expected to receive BBB/BBB- ratings from S&P Global Ratings and Fitch Ratings
Sources
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