(Bloomberg) -- An Indian bank is planning to tap the offshore market for its debut sustainable perpetual bond amid growing demand for both riskier bank debt and sustainable investments.
Axis Bank has hired banks to arrange investor meetings ahead of a potential Basel-compliant additional Tier I note sale, the proceeds of which are earmarked for green and social projects, a person familiar with the matter said on Monday.
The planned transaction follows a recent deal by a local peer, which sold the first offshore perpetual bond by an Indian bank since September 2016. It follows an impending rule change next year that forces Indian onshore mutual funds to cut their exposure to rupee hybrids.
The planned deal would also tie in with the growing global demand for sustainable bonds, a force that Moody's estimates could help companies raise a record $850 billion globally this year.
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