# ICICI Bank Plans $500 Million Bond Issue via GIFT City The bank's first dollar bond issuance in nearly a decade. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-21 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/dc874b47-c98e-4c86-ae7c-cf1696239ec7 ## ICICI Bank's major move ICICI Bank is preparing to issue at least $500 million in five-year dollar bonds through GIFT City. This move will leverage the Reserve Bank of India's (RBI) dollar-rupee swap facility. It marks the bank's first dollar bond issuance in almost a decade. ## Advantages of the swap facility RBI's swap facility allows banks to hedge external commercial borrowings at a fixed rate of 1.5% annually. This reduces dollar borrowing costs, making overseas funding more attractive for Indian banks. ICICI Bank is capitalizing on this advantage. ## Support for client financing The proceeds from the bond issuance will be used to meet client financing needs. Sources indicate that clients will receive leverage of up to nine times. This is part of the bank's strategy to expand its customer base. ## Compliant with SEC 144A rules The bonds will be issued under SEC's 144A rules, which allow companies to raise capital quickly from Qualified Institutional Buyers (QIBs) in the US without full SEC registration. ICICI Bank is using this method to expedite the process. ## Moves by other banks ICICI Bank follows HDFC Bank and Axis Bank in utilizing RBI's swap facility. HDFC Bank raised $750 million, while Axis Bank issued $800 million in bonds. Indian banks have collectively mobilized $20.7 billion through this facility. ## Significance for India's financial sector This bond issuance highlights the growing importance of overseas funding in India's financial sector. RBI's swap facility reduces dollar borrowing costs, supporting the economy. ICICI Bank's move will also intensify competition in the sector. ## Sources covering this story - https://economictimes.indiatimes.com/markets/bonds/icici-bank-eyes-500-million-dollar-bond-issue-via-gift-city/articleshow/132538886.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._