IDFC First Bank upsized its initial $500 million senior notes to finally raise $600 million through its maiden international bond issuance.

An additional $100 million in senior notes was successfully priced through its IFSC Banking Unit in Gift City. The consolidated issue size of the bank’s first international debt offering thus became $600 million. 

This transaction marks IDFC First Bank's entry into international debt markets with senior notes, demonstrating  diversified funding sources beyond domestic channels. 

“This inaugural transaction is a landmark milestone for IDFC First Bank. We are delighted to see strong participation from some of the world’s leading institutional investors in our maiden international bond issuance,” said Sudhanshu Jain, chief financial officer and head – corporate centre, IDFC First Bank.

The three-year fixed-rate senior notes, issued through the bank’s International Financial Services Centre Banking Unit at GIFT City, carry a fixed coupon rate of 5.625% and mature in 2029.

The bonds were offered to investors outside the US under Regulation S, which allows offshore securities offerings without registration with the US Securities and Exchange Commission, the bank said. 

The transaction was anchored by marquee global institutional investors, including BlackRock, Capital Group and Alliance Bernstein. Their participation reflects strong investor confidence in the bank’s financial strength, growing franchise, prudent risk management and long-term prospects, the release said.

BofA Securities acted as the sole placement agent for the transaction.

Earlier, IDFC First Bank had secured its first international investment-grade issuer credit ratings from S&P Global Ratings. The agency assigned the bank on 13 August a ‘BBB-’ long-term and ‘A-3’ short-term rating, with a stable’ outlook.  

Jain had at that time said that the investment-grade status is expected to enhance the bank’s standing with global investors and financial institutions.

According to S&P, the bank is expected to maintain strong capitalisation over the next 18-24 months. Its risk-adjusted capital (RAC) ratio is projected to stay at 10%-10.5%, compared with 10.9% as of March 2026, supported by regular capital raising, improving profitability and a low dividend payout policy. 

“The bank’s loan book is likely to grow at 20% per annum over that period (18-24 months), faster than the wider Indian banking industry,” S&P said.

The agency expects IDFC First Bank to raise additional capital of up to Rs 7,500 crore in FY27 and to conduct further equity infusions as needed to support its growth plans. 

The investment-grade rating will go to support the bank’s Standby Letter of Credit (SBLC) line, foreign currency funding, FCNR(B) deposit mobilisation, correspondent banking relationships, and cross-border trade finance activities.