Axis Bank lists $600-mn AT-1 sustainable bonds on IFSC exchanges

Axis Bank has listed its $600 million Additional Tier 1 (AT1) sustainable bonds on IFSC (International Financial Services Centre) exchanges at Gujarat International Finance Tec-City (GIFT).

Axis Bank has listed its USD 600 million Additional Tier 1 (AT1) sustainable bonds on IFSC (International Financial Services Centre) exchanges at Gujarat International Finance Tec-City (GIFT).

The bonds were listed on the global securities market platform of India International Exchange (India INX) and debt securities market platform of NSE International Exchange (NSE IFSC), the two bourses said in separate statements on Thursday.

These platforms were launched for listing and trading of debt securities in multiple foreign currency bonds, green bonds, masala bonds, notes, among others.

Axis Bank through its IFSC Banking Unit (IBU) in GIFT IFSC raised USD 600 million in AT 1 sustainable bonds under its USD 5-billion global medium-term note programme.

The dollar-denominated, Basel III-compliant AT1 notes were competitively priced at 4.10 per cent and evinced interest from investors across diverse geographies.

"The USD 600 million AT-1 Bond issuance under ESG (environmental, social and governance) category marks the beginning of GIFT IFSC emerging as a preferred destination for raising of capital for sustainability," Injeti Srinivas, Chairman, IFSCA said. The platform provides an efficient international listing process to issuers with minimum turnaround time and investment opportunities for investors from across the world.

"We look forward to a healthy pipeline of offshore bond issuances listing on our platform making Indian IFSC the destination of choice for listing overseas issuances. Till date, GSM platform has established over USD 55 billion in MTN programmes and more than USD 31 billion of bonds issued," V Balasubramaniam, Managing Director and Chief Executive Officer, INDIA INX said. Since the launch of NSE IFSC debt securities market, the platform has listed total aggregate Medium-Term Note (MTNs) worth over USD 22.25 billion; also witnessed listing of issues aggregate to USD 16.2 billion (including USD 750 million Green Bond). Vikram Limaye, Managing Director and Chief Executive Officer, NSE said the platform facilitates issuance of green and sustainable bonds to offer local and international issuers an additional source of green financing to improve investor diversification, as well as enable issuers to focus on enhancing their ESG initiatives.

In a separate statement, India INX said that Adani Green Energy has listed its USD 750 million foreign currency green bonds on its Global Securities Market platform.

The bonds were rated Ba3 (stable) by Moody's and have garnered huge investor interest across the globe.