India Development News & Foreign Investment Opportunities

Axis’ US$500m green bonds

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Mumbai-headquartered Axis Bank Limited has raised US$500 million maiden green bonds from the international market.

The Notes are issued by Axis Bank’s DIFC branch, Dubai and are rated Baa3 by Moody’s, BBB- by S&P and BBB- by Fitch.

Commenting on the green bond issue, V Srinivasan, Deputy Managing Director, Axis Bank, said “It’s a very proud moment for us, as Axis Bank is not only India’s first internationally listed Green Bond issuer, but also India’s first Green Bond to be certified and truly aligned with supporting environment-friendly development. The encouraging response to our successful Green Bond issuance, attractively priced, is reflective of the realisation and recognition of the global need to encourage and support eco-friendly sustainable development. This success is also reflective of Axis Bank’s confirmed commitment to supporting green ventures in overall infrastructure development in the country.”

Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group, said “Axis Bank is a long standing and distinguished equity issuer on London Stock Exchange and has been an instrumental partner in the IFC’s masala bond programme devoted to developing infrastructure in India. It is therefore no surprise that Axis Bank is taking a global leadership role today, with the successful issuance of the first internationally listed certified green bond from India. We are honoured to welcome this landmark issuance, which builds on the far-reaching announcements made during the Indian Prime Minister’s visit strengthening financial ties between the UK and India”

The Notes have been issued at a price of 99.479 to yield 2.988%. The Notes will be denominated in US dollars and will bear fixed interest of 2.875% per annum, with interest payable semi-annually in arrears. Axis Bank will apply the net proceeds for financing or refinancing high quality green assets.

Axis Bank – Singapore Branch, BAML, Citi, Credit Agricole CIB, HSBC, J.P. Morgan and Standard Chartered acted as joint book-runners and lead managers. fii-news.com

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