IDFC First Bank Raises $500 Mn Via Maiden International Bond Issuance

First Bank on Wednesday said it has raised  $500 million in debt, with global investors like BlackRock, Capital Group, and Alliancebernstein anchoring its maiden international bond issuance.

The bank, through its IFSC Banking Unit at GIFT City, issued the bonds having a tenure of three years and a fixed coupon of 5.625%.

The notes were placed with investors outside the US in Regulation S format, IDFC First Bank said in a statement.

This is the bank's first international bond issuance and marks its entry into the global debt capital markets. S&P Global Ratings has assigned a 'BBB-' long-term issuer credit rating with a stable outlook to the bond issuance.

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

The successful placement of the notes broadens the bank's funding base and establishes an important new avenue for accessing international capital.

IDFC First Bank, Chief Financial Officer, Sudhanshu Jain said the successful execution of the transaction reflects growing recognition of the strength of the bank's franchise, the resilience of balance sheet and the progress it has made over the last several years.