New Delhi, Aug 20: In the recent months, Indian banks have raised more than USD 4 billion through international bond markets, with strong investor demand helping several lenders secure tighter pricing than their initial guidance.
Among them, Bank of Baroda raised USD 700 million through two senior unsecured dollar bond issuances on 13 August.
It raised USD 400 million through three-year notes at a spread of 90 basis points over US Treasuries and USD 300 million through five-year notes at a spread of 100 basis points.
The bank was able to tighten pricing by around 30 basis points from its initial price guidance.
State Bank of India (SBI) raised USD 500 million through five-year senior unsecured notes on 11 August at a spread of 88 basis points.
The issue attracted a peak order book of more than USD 2.4 billion, allowing the lender to tighten pricing by 32 basis points from its initial guidance.
The strong demand for the issue also helped SBI achieve its tightest five-year spread for an Indian bank since its previous five-year dollar bond issue in September 2025, according to the data collated by CITI.
ICICI Bank raised USD 1 billion through five-year senior unsecured notes on 23 July, marking its return to the US dollar bond market after its previous issuance in 2017.
The issue received peak orders of more than USD 3.5 billion and saw pricing tighten by 30 basis points from initial guidance.
Axis Bank raised USD 300 million through five-year senior unsecured notes and USD 500 million through perpetual AT1 notes in June.
HDFC Bank raised USD 750 million through five-year senior unsecured notes on 16 June. The issue attracted peak orders of more than USD 2.1 billion and pricing tightened by 30 basis points from initial guidance.
The recent issuances show continued access for Indian banks to international debt markets, with investor demand supporting large bond transactions and tighter pricing. (BVI)
