ICICI Bank is in talks to issue at least $500 million in benchmark US dollar bonds under its GMTN programme
Expected in the coming weeks, the planned deal would be its first benchmark dollar bond since 2017
Move reflects RBI-backed momentum in overseas fundraising by Indian banks
ICICI Bank is preparing to return to the international debt market with plans to raise at least $500 million through a benchmark US dollar bond issue.
India's second-largest private-sector lender is in discussions with a group of global banks to arrange the proposed fundraising under its Global Medium-Term Note (GMTN) programme, Bloomberg (BBG) reported citing people familiar with the matter.
1 June 2026
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The issuance is expected to take place in the coming weeks, although the discussions remain private.
ICICI Bank is yet to respond to Outlook Business' query for comment.
If completed, the transaction would mark the bank's first benchmark US dollar bond offering under the GMTN programme since it raised $500 million in 2017, as per BBG.
RBI Measures Encourage Overseas Fundraising
The proposed issue comes after the Reserve Bank of India (RBI) announced a concessional foreign exchange swap facility for eligible overseas borrowings last month. The move is aimed at attracting global capital while supporting the rupee by lowering hedging costs for institutions raising funds abroad.
The policy change has already prompted several Indian financial institutions to tap overseas markets. HDFC Bank recently raised $750 million through a dollar bond sale, while Axis Bank, State Bank of India and Power Finance Corporation have also accessed international debt markets, as per BBG.
The RBI's initiative has also helped stabilise the rupee after pressure caused by the energy market disruption during the US-Iran conflict. The Indian currency has appreciated by nearly 2% since touching a record low of almost 97 against the US dollar in late May.
HDFC Bank Issue Signals Strong Investor Appetite
HDFC Bank's recent offshore fundraising has drawn significant attention across the banking sector. The lender issued $750 million of senior unsecured dollar-denominated bonds through its GIFT City IFSC Banking Unit, with a five-year maturity ending in June 2031 and an annual coupon of 5.067%.
The bonds are expected to carry investment-grade ratings of Baa3 by Moody's and BBB by S&P, and will be listed on India International Exchange (IFSC) Ltd and NSE IFSC.
Robust demand from international investors enabled HDFC Bank to price the bonds at 90 basis points above US Treasury yields, tighter than the initial guidance of 120 basis points.
The proceeds from HDFC Bank's issue will support its banking operations, including overseas branches and subsidiaries, while strengthening liquidity and funding flexibility.
