IDFC First Bank Ltd

Notes issuance details

• Issuer: IDFC FIRST Bank Limited, through its IFSC Banking Unit.
• Issuance size: US$350 million; five-year tenor.
• Type: Reg S issuance on a private placement basis.
• Allotment 28 August 2026; maturity 28 August 2031.
• Coupon: 5.800%; payments on Aug 28 and Feb 28.
• Security: Unsecured.
• Listing: Proposed on Vienna MTF and India debt markets (INX/NSE IX).
• Redemption: Redeemable at maturity unless previously redeemed or purchased.
• Pricing and demand: Pricing August 24, 2026; strong demand from marquee global institutional investors.
• Follow-on issuance context: Follows US$500m 3-year issue priced Aug 18; upsized to US$600m on Aug 19.

ESOS allotment

• Committee approved allotment of 489,934 equity shares to eligible employees on August 21, 2026.
• Post-allotment paid-up capital rose to ₹86,21,70,95,230; total shares now 8,62,17,09,523.

Rating details

• US$600 million Senior Notes rated BBB- long-term.
• Outlook aligned with issuer rating BBB-/Stable/A-3.
• Rating agency: S&P Global Ratings.
• Rationale: rating consistent with issuer credit profile.
• Material change: new rating assignment for Senior Notes after Aug 13, 2026 issuer rating disclosure.

Financing update

• Additional US$100 million Senior Notes priced, upsizing total to US$600 million.
• Pricing occurred on 19 August 2026.
• Consolidated issue size now US$600 million.
• Notes issued through the IFSC Banking Unit; terms identical to August 18 disclosure.

Maiden international notes issuance

• IDFC FIRST Bank priced US$500 million 3-year senior notes via Reg S private placement.
• Maiden entry into international debt capital markets to diversify funding and access global capital.
• Tenor 3 years; allotment Aug 25, 2026; maturity Aug 25, 2029.
• Coupon 5.625%; semi-annual payments on Aug 25 and Feb 25.
• Unsecured notes; potential listing on Vienna MTF and INX/NSE IX venues.
• Allotment date and execution under Reg S private placement.

Rating action

• S&P assigns BBB- (long-term) and A-3 (short-term) issuer ratings; outlook stable.

Key rationale

• Capitalization expected to stay strong with RAC above 10% over 18–24 months.
• Funding remains granular retail-led; core deposits ~89% of total funding; retail ~80% of deposits.
• CASA ratio 50.8% as of 6/30/2026; top deposit concentration 9.4% of total deposits.
• NIM expected to improve 5–10 bps in 2027; profitability to improve; cost-to-income 65–70% in two years.
• Loan growth projected around 20% annually; asset quality to stay stable; GNPL 1.7–1.8%; credit costs 1.5–1.6%.

Additional details

• Regular equity injections anticipated; up to INR 75 billion in FY2027 to support growth.
• Management aims to maintain RAC above 10% on a sustained basis.

Outlook & sensitivities

• Outlook: Stable for the long-term rating.
• Upgrade trigger: RAC above 10% sustained with profitability gains; downgrade risk if RAC falls below 10%.
• Asset quality deterioration beyond ~1.5% credit losses could pressure ratings.

Material changes

• New issuer credit ratings assigned; no prior S&P rating on IDFC First Bank.

Resignation of Senior Management

• Ashish Singh resigns from Senior Management; Aug 11, 2026; last working day Dec 31, 2026; pursuing other opportunities.

Analyst/Investor meeting schedule

• 11-12 Aug 2026: Nuvama India Investor Conference; Singapore venue The Fullerton.
• 13 Aug 2026: Nuvama India Investor Conference; Hong Kong venue JW Marriott.
• 14 Aug 2026: Equirus Annual India Conference 2026; Sofitel, BKC, Mumbai.
• 17 Aug 2026: Motilal Oswal 22nd Global Investor Conference; Grand Hyatt, Mumbai.
• 18 Aug 2026: Axis Capital's India Financial & Real Estate Corporate Day; Park Royal, Marina Bay, Singapore.
• Schedule subject to change due to exigencies on part of investors/Company.
• Q1-FY27 investor presentation will be used; uploaded on the bank's website.

Financial Performance

• Total consolidated income ₹48,422.39 crore.
• Consolidated PAT ₹1,610 crore.
• Loans and advances ₹2.84 lakh crore, up 20% YoY.
• Deposits ₹2.94 lakh crore.

Capital & Capital Adequacy

• CAR 15.05%.
• CET1 13.33%.

Dividend & Corporate Actions

• Proposed dividend ₹0.25 per equity share.
• Amalgamation of eIDFC into Bank effective Oct 1, 2024.

Additional Capital Actions

• Equity raise up to ₹7,500 crore.
• Debt issuance up to ₹12,500 crore.