Debt Securities Issuance
Axis Bank Successfully Allots US$800 Million Notes Under Global Medium Term Note Programme
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Axis Bank Limited has successfully completed the issuance and allotment of US$500 million 6.875% Additional Tier 1 (AT1) Notes and US$300 million 5.348% Senior Notes under its US$5 billion Global Medium Term Note (GMTN) Programme. The notes will be listed on India International Exchange (India INX) and NSE IFSC, strengthening the bank’s long-term capital base and international funding profile.
PRICE-SENSITIVE TRIGGER
Event: Axis Bank completed the issuance and allotment of international notes under its Global Medium Term Note (GMTN) Programme.
Type: Debt Securities Issuance
Impact: Positive
Immediate Effect: The successful issuance strengthens Axis Bank’s capital position and diversifies its long-term international funding sources.
Key Metrics:
- Additional Tier 1 (AT1) Notes:Â US$500 million.
- AT1 Coupon:Â 6.875%.
- Senior Notes:Â US$300 million.
- Senior Notes Coupon:Â 5.348%.
- Total Funds Raised:Â US$800 million.
- Programme Size:Â US$5 billion Global Medium Term Note (GMTN) Programme.
- Listing Venue:Â India International Exchange (India INX) and NSE IFSC Debt Securities Market.
Highlight:
- Axis Bank has successfully raised US$800 million through international debt securities, including US$500 million of AT1 capital instruments.
What Happened ?
Axis Bank informed the stock exchanges that it has successfully completed the issuance and allotment of US$500 million Additional Tier 1 Notes and US$300 million Senior Notes under its US$5 billion Global Medium Term Note Programme. The issuance has been completed in accordance with applicable laws and regulatory requirements, with both securities proposed to be listed on the India International Exchange (IFSC) Limited and the NSE IFSC Debt Securities Market.
Key Details
Fundraising Overview:
- Successfully completed issuance of US$800 million international debt securities.
- Raised funds through two separate instruments under the existing GMTN Programme.
- Entire issuance has been completed in compliance with applicable regulatory requirements.
Issuance Structure:
- US$500 million issued as 6.875% Additional Tier 1 Notes.
- US$300 million issued as 5.348% Senior Notes.
- Both issuances form part of the bank’s US$5 billion GMTN Programme.
Strategic Significance:
- Strengthens the bank’s regulatory capital through Additional Tier 1 instruments.
- Enhances access to global debt capital markets.
- Diversifies long-term funding sources beyond domestic borrowings.
- Supports future business growth and capital planning.
Note:
- The announcement confirms successful completion of the issuance and allotment process. No revision to the bank’s financial guidance or operating outlook was disclosed.
Risk Analysis
Summary:
- The fundraising has already been completed, limiting execution risk. However, the bank will continue to manage future obligations relating to interest payments, capital management and prevailing global funding conditions.
Key Risks:
- Future interest payment obligations on the issued notes.
- Exposure to changes in international funding market conditions.
- Regulatory compliance associated with outstanding international debt securities.
Worst Case:
- Adverse global interest rate movements or refinancing conditions could increase future funding costs when similar international issuances mature.
Risk Level: Low
Company Commentary
- Axis Bank confirmed successful issuance and allotment of both AT1 and Senior Notes.
- The issuance was completed under the bank’s US$5 billion Global Medium Term Note Programme.
- The notes will be listed on India International Exchange (IFSC) Limited and the NSE IFSC Debt Securities Market.
- The transaction has been completed in accordance with applicable legal and regulatory requirements.
Official Exchange Filing: Axis Bank Limited
