Indian Banks Raise $4 Billion via Global Bond Issuances Between June and August

Major Indian banks have collectively raised $4 billion through global bond issuances in recent months, according to a market note from Citi India. The funding activity took place between June 16 and August 13, driven by strong international investor interest in Indian financial sector credit.

The fundraising cycle began with a $750 million issuance from HDFC Bank, the country's largest private sector lender. This was followed by multiple transactions from other major financial institutions. State-run Bank of Baroda completed the reported period's issuances with a cumulative $750 million fundraise through two instruments.

Several other prominent lenders executed significant global debt transactions during this window. On August 11, the State Bank of India (SBI), the country's largest lender, raised $500 million through a five-year paper. According to the Citi note, SBI's issuance achieved the tightest 5-year spread for an Indian bank since September of last year, priced at T+88, or 0.88 percent over the US treasury bill.

ICICI Bank, the second-largest private sector bank in India, secured $1 billion from a 5-year paper at a spread of T+100. The Citi statement noted that this transaction marked the largest USD senior bond issuance by an Indian private sector bank in nearly 14 years.

Earlier, on June 23, Axis Bank raised a cumulative $800 million through two separate instruments. This included $300 million raised from 5-year senior unsecured fixed rate notes at a spread of T+110, alongside $500 million from USD Perpetual NC5.5 RegS subordinated at1 fixed rate notes priced at 6.875 percent.

Market participants observed robust demand across these transactions. Many issuances generated peak order books that substantially exceeded the target amounts, such as $2.1 billion in demand for HDFC Bank's issuance and $2.4 billion for SBI's offerings. This high level of demand enabled lenders to tighten final pricing compared to their initial guidance.

The transactions follow measures announced by the Reserve Bank of India (RBI) in the first week of June, which included a concessional forex swap facility designed to attract foreign currency amid sustained pressure on the rupee. While a successful move involving FCNR(B) deposits was cut short, banks retain time until December to raise capital under the remaining incentives offered by the central bank.

Arrangers expect the momentum in international debt markets to persist. Citi India stated that the trend of global bond issuances by Indian financial institutions is likely to continue through the remainder of the second half of 2026, supported by strong international demand.

"The ability of major Indian banks to raise $4 billion through global bond issuances reflects strong international confidence in the domestic financial sector. With robust order books allowing lenders to secure tighter pricing, this debt capital raising activity demonstrates healthy liquidity and strategic treasury management. As banks continue to utilize RBI's concessional frameworks through the rest of the year, accessing international markets will remain a key avenue for capital expansion." — Dr. Shishir Gupta, Founder & CEO, StartupLanes