Key insights from India’s offshore debt issuance hub at GIFT City

OVERVIEW

The International Financial Services Centre (IFSC) at GIFT City has rapidly evolved into a dynamic offshore debt capital hub for Indian issuers. The FY 2024–25 period marked significant growth in foreign currency bond listings, particularly from non-banking financial companies (NBFCs), renewable energy firms, and public sector entities.

• 57 USD‑denominated bond listings raised USD 6.99 billion—all via private placement.
• 88 % of volume came from Indian NBFCs; top deals reached USD 650 million each.
• Fixed‑rate issues dominated value (95 %), yet 60 % of deals were SOFR‑linked floaters.
• 39 % of issuance carried green, social, or sustainable labels.
• Credit mix: investment‑grade, high‑yield, and unrated bonds co‑existed, with most rated BB–BBB.
• Result: GIFT IFSC solidified its role as India’s premier offshore debt hub, blending diverse issuers, ESG momentum, and global market infrastructure.

Who Issued, What, and How Much?

Top 5 Issuers (by volume):

• Muthoot Finance, Continuum Trinethra Renewables, SBI, REC Ltd, and Shriram Finance—together contributed nearly 40% of total issuance.

Instrument Profile:

• Fixed-Rate Bonds: 22 deals totaling USD 6.66 billion (95% of total value), preferred for large-scale funding.
• Floating-Rate Bonds: 35 issuances worth USD 329 million, mostly SOFR-linked and used for niche/smaller transactions.

Coupon Trends:

• Fixed: Avg. 6.63% (range: 3.75%–9.7%)
• Floating: Avg. SOFR + 4.43% (range: +0.95% to +5.0%)

Maturity & Size:

• Most bonds matured in 3–5 years; longest dated: Feb 2034 (NH2 Tollway).
• 21 deals were ≤ USD 10 Mn; 15 in USD 101–500 Mn; 2 exceeded USD 500 Mn—indicating a market serving both small NBFCs and large corporates.

Green, Social & Sustainable Bonds Shine at IFSC

Breakdown of ESG Issuances:

• Green Bonds: USD 1.455 Billion (20.8%)

Primarily issued by renewable energy firms like Continuum Trinethra Renewables and SAEL, supporting clean energy infrastructure.

• Social Bonds: USD 850 Million (12.1%)

Focused on financial inclusion, these were issued by institutions like Shriram Finance and Indiabulls Housing Finance to fund affordable credit access.

• Sustainable Bonds: USD 450 Million (6.4%)

Blending environmental and social objectives, sustainable bonds added depth to the ESG offering.

• Total ESG-Linked Volume:

USD 2.755 Billion — representing 39.4% of the year’s total issuance volume at IFSC.

The data signals a strong institutional appetite for sustainability-themed investments and GIFT City’s growing appeal as a global hub for green and inclusive capital flows.

Platforms, Trustees & Ratings

Market Platforms:

Debt listings at GIFT IFSC were facilitated through India INX and NSE IX. Smaller issuances used India International Depository (IIDI), while larger deals were settled via global depositories like DTC and Euroclear.

Trustees:

• Indian Trustees: 36 issues totaling USD 1.15 billion
• Foreign Trustees: 17 issues totaling USD 5.42 billion
• Large issuances preferred international trustees, while smaller ones opted for domestic services.

Lead Arrangers:

Top arrangers included Deutsche Bank, Standard Chartered, Barclays, and Citigroup—playing a key role in structuring and placement.

Credit Ratings:

• 26 of 57 issuances (USD 6.26 Bn) were rated

Investment Grade: 6 deals (USD 1.63 Bn)

High Yield (BB+ or lower): 20 deals (USD 4.63 Bn)

• Key rating agencies: Moody’s, S&P, Fitch, and CareEdge Global

Backed by global infrastructure and progressive regulation, GIFT IFSC continues to evolve as India’s premier gateway for offshore debt capital.

Conclusion

• The FY 2024–25 performance of the debt market at GIFT IFSC underscores its growing relevance as India’s offshore capital hub.
• With 57 issuances raising close to USD 7 billion, the platform demonstrated strong issuer participation—particularly from NBFCs, renewable energy companies, and public sector institutions.
• The market has shown healthy diversification in terms of instrument structure, maturity profiles, and investor appetite.
• Notably, nearly 40% of total issuances were ESG-linked, highlighting the IFSC’s evolving role in sustainable finance.
• Robust infrastructure, access to international depositories, engagement from global trustees and arrangers, and increasing alignment with global credit benchmarks collectively enhance GIFT IFSC’s appeal for cross-border capital flows.
• As regulatory frameworks continue to mature and investor confidence deepens, GIFT IFSC is well-positioned to emerge as a globally competitive debt capital platform—offering Indian and international issuers efficient, transparent, and strategic access to global markets.