Axis Bank, Kotak Mahindra Bank and Union Bank Raise Over $1.85 Billion in Offshore Debt 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. The collective activity amounted to $1.85 billion in offshore bond transactions, occurring as their respective shares traded mixed on the National Stock Exchange (NSE) on Tuesday.

Axis Bank announced plans to redeem its $600 million 4.10 per cent Additional Tier 1 (AT1) notes in full on September 8, 2026, which marks the First Call Date. The notes will be redeemed at par, representing 100 per cent of the principal, alongside accrued and unpaid interest. Originally issued on September 8, 2021, the private sector lender stated it obtained prior approval from the Reserve Bank of India’s Department of Banking Regulation on July 31, 2026. Axis Bank demonstrated that its capital position will remain well above the minimum regulatory requirements following the redemption. On Tuesday, Axis Bank shares closed down 0.08 per cent at ₹1,235, with a market capitalisation of approximately ₹3.84 lakh crore.

Meanwhile, Kotak Mahindra Bank allotted $650 million in 5.478 per cent senior unsecured notes due August 24, 2031. The issuance falls under its $1 billion Euro Medium Term Note (EMTN) programme. These five-year notes are rated BBB by S&P Global Ratings, issued under Regulation S of the U.S. Securities Act of 1933, and are designated for listing on the India International Exchange (IFSC) Ltd and NSE IFSC Ltd. Coupon payments are scheduled semi-annually on February 24 and August 24, with the principal redeemable at par upon maturity. Kotak Mahindra Bank's stock closed largely flat at ₹401.60, up 0.04 per cent, giving the bank a market valuation of approximately ₹3.99 lakh crore on the NSE.

Union Bank of India disclosed a dual-tranche $600 million offering of USD-denominated senior unsecured notes executed through its Dubai International Financial Centre (DIFC) Branch. Filed with exchanges on August 24 and 25, the offering comprises two equal tranches of $300 million each. The first tranche consists of three-year notes maturing on August 28, 2029, with a coupon of 5.230 per cent, while the second tranche features five-year notes maturing on August 28, 2031, carrying a coupon of 5.417 per cent. Both tranches will pay interest semi-annually starting February 28, 2027. The notes are expected to receive ratings of BBB and BBB- from S&P Global and Fitch, respectively, and will be listed on NSE IFSC Ltd. Proceeds from this issuance will support the DIFC Branch’s operations and general corporate purposes. Union Bank shares rose 1.84 per cent to close at ₹186.98, marking the strongest performance among the three banks, with a market capitalisation of approximately ₹1.43 lakh crore.

This flurry of offshore activity demonstrates the continued appetite among Indian banking institutions for international capital markets. Such transactions allow banks to diversify their funding sources, manage liability profiles, and support growth initiatives even as domestic equity markets remain range-bound.

"The recent offshore debt market activity by Axis Bank, Kotak Mahindra Bank, and Union Bank of India highlights the strategic focus of major financial institutions on international capital markets. By utilizing USD-denominated note issuances, debt listings on IFSC exchanges, and planned AT1 note redemptions with regulatory approval, these banks are effectively diversifying their funding sources and managing their liability profiles. This $1.85 billion collective movement demonstrates that Indian banks continue to maintain strong access to global liquidity to support their operations and long-term growth objectives." — Dr. Shishir Gupta, Founder & CEO, StartupLanes