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.

• 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.

• 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 Mn, mostly SOFR-linked and used for niche/smaller transactions.
• Coupon Trends:
• Fixed: Avg. 6.63% (range: 3.7596-9.7%)
• Floating: Avg. SOFR + 4.43% (range: 0.95%-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.

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:

• Out of 57 issuances, 26 (45.6%) were rated, contributing 89.5% (USD 6,259.30 Mn) of the total volume obtained credit rating.
• 6 were investment grade (USD 1,628.30 Mn) and 20 were high yield (USD 4,631 Mn), Relecting the emerging market profile. Notably, 16 issuances were rated between BB and BBB.

Conclusion

• The FY 2024-25 performance of the debt market at GIFT IFSC underscores its growing relevance as India’s offshore capital hub.
• The market has shown healthy diversification in terms of instrument structure, maturity profiles, and investor appetite.
• 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.
• Backed by global infrastructure and progressive regulation, GIFT IFSC continues to evolve as India’s premier gateway for offshore debt capital.