Mumbai |: Axis Bank has achieved another milestone in its international fundraising strategy after its U.S.$300 million Senior Notes issued through its GIFT City Branch received investment-grade credit ratings from two of the world’s leading rating agencies—S&P Global Ratings and Moody’s Investors Service.
According to a regulatory filing made by the bank, S&P Global Ratings has assigned a BBB rating, while Moody’s Investors Service has assigned a Baa3 rating with a Stable Outlook to the Notes issued under Axis Bank’s Global Medium Term Note (GMTN) Programme.
The ratings reinforce investor confidence in the bank’s financial strength and its ability to meet long-term debt obligations in international capital markets.
Details of the Senior Notes
The credit ratings apply to U.S.$300 million 5.348% Fixed Rate Senior Notes, which are scheduled to mature on 30 June 2031.
Key Highlights
- Issuer: Axis Bank Limited – GIFT City Branch
- Instrument: Senior Notes
- Issue Size: U.S.$300 Million
- Coupon Rate: 5.348% Fixed Rate
- Maturity Date: 30 June 2031
- Moody’s Rating: Baa3 (Stable Outlook)
- S&P Global Ratings: BBB
- Programme: U.S.$5 Billion Global Medium Term Note (GMTN) Programme
The newly rated Notes will be consolidated with the existing U.S.$300 million 5.348% Senior Notes, forming a single series under the bank’s US$5 billion GMTN Programme.
What the Ratings Mean
The ratings assigned by S&P Global Ratings and Moody’s Investors Service fall within the investment-grade category, indicating that the issuer has an adequate capacity to meet its financial commitments.
- BBB from S&P Global Ratings represents the lowest tier of investment-grade ratings but still reflects a satisfactory level of creditworthiness.
- Baa3 from Moody’s is also an investment-grade rating, accompanied by a Stable Outlook, suggesting that the agency expects the bank’s credit profile to remain stable over the medium term.
Investment-grade ratings generally help issuers access international debt markets at competitive borrowing costs while broadening their global investor base.
Strengthening International Capital Market Presence
The issuance of Senior Notes through the GIFT City Branch highlights Axis Bank’s growing participation in international financial markets.
Gujarat International Finance Tec-City (GIFT City) has emerged as India’s premier international financial services hub, enabling Indian financial institutions to raise capital from overseas investors through globally recognized financial structures.
By issuing debt under its Global Medium Term Note Programme, Axis Bank aims to diversify its funding sources and strengthen its long-term capital management strategy.
Regulatory Disclosure
Axis Bank informed the stock exchanges that the latest disclosure specifically relates to the Moody’s credit rating assigned to the Notes.
The bank also confirmed that the official rating letter has been submitted to the stock exchanges for information and regulatory compliance.
The GMTN Programme had been disclosed earlier, while this announcement provides details regarding the latest credit rating assigned to the specific debt issuance.
Understanding Credit Ratings
Credit ratings issued by agencies such as S&P Global Ratings and Moody’s Investors Service are independent assessments of an issuer’s ability to repay its debt obligations.
However, the agencies also clarified that a credit rating is not a recommendation to buy, sell, or hold securities. Ratings may be revised, upgraded, downgraded, or withdrawn based on changes in the issuer’s financial performance, market conditions, or other relevant factors.
Positive Signal for Global Investors
The assignment of BBB and Baa3 (Stable) ratings strengthens the credibility of Axis Bank’s international debt programme and reflects confidence in the bank’s financial stability and credit profile.
The investment-grade ratings are expected to enhance investor interest in the Notes while supporting the bank’s efforts to access global capital markets efficiently. As one of India’s leading private sector banks, Axis Bank continues to expand its international funding capabilities through strategic issuances from GIFT City, reinforcing its position in the global financial ecosystem.
