The Federal Bank Limited has established a US$ 500,000,000 Medium Term Note (MTN) Programme, with the notes proposed to be listed and admitted to trading on NSE IFSC Limited, GIFT City. The transaction saw two prominent law firms advise on either side, with TT&A acting for the bank and Linklaters acting for the arranger. This marks the bank’s debut entry into the offshore dollar bond market through the establishment of its MTN Programme.
Introduction
Federal Bank Limited established the US$500 million medium-term note (MTN) programme following board approval communicated earlier in September 2026. The filing creates a framework for future overseas debt issuances and does not represent an immediate fund raise or change in the bank’s current debt position.
Linklaters advised The Hongkong and Shanghai Banking Corporation Limited, which is acting as the arranger, dealer, and trustee for the MTN Programme. Programme documentation has been submitted to NSE IFSC Limited and made available via both the exchange’s and the bank’s websites, signalling the bank’s intention to access international debt markets and diversify its funding sources.
Under the MTN programme, the bank will have the authority to offer, issue, and allot secured or unsecured bonds, which may include foreign currency notes structured in one or more tranches.
Deal Value
The Federal Bank Limited has established the MTN Programme at a programme size of US$ 500,000,000 (five hundred million US dollars).
Legal Teams Involved
TT&A — Advised The Federal Bank Limited
TT&A advised Federal Bank on this transaction. The transaction team consisted of:
- Priyanka Kumar — Partner
- Saara Ahmed — Managing Associate
- Shrijaya Singh — Associate
Linklaters — Advised The Hongkong and Shanghai Banking Corporation Limited (Arranger, Dealer and Trustee)
Linklaters advised The Hongkong and Shanghai Banking Corporation Limited, acting as the arranger, dealer, and trustee for the MTN Programme. Further details of the Linklaters team composition on this specific transaction were not disclosed.
Significance and Impact
This transaction marks Federal Bank’s debut entry into the offshore dollar bond market through the establishment of its MTN Programme. The milestone is significant for a Kerala-based private sector lender looking to diversify its funding base beyond domestic channels.
The MTN Programme creates a platform through which Federal Bank can issue debt securities in international markets whenever funding requirements arise and market conditions are favourable, giving the bank greater flexibility in accessing overseas debt markets without having to establish a fresh issuance framework each time.
The MTN programme positions Federal Bank to tap offshore investors in a structured manner, potentially lowering funding costs and enhancing balance sheet flexibility, while also improving its competitive standing among Indian private-sector lenders by broadening its capital-raising options.
The proposed listing on NSE IFSC Limited at GIFT City further underscores the growing role of India’s international financial services centre as a hub for offshore debt capital market activity by Indian banks.
The establishment of Federal Bank’s US$500 million MTN Programme — advised by TT&A on the issuer side and Linklaters on the arranger side — represents a pivotal step in the bank’s international capital markets strategy. With notes to be listed on NSE IFSC Limited, GIFT City, the transaction demonstrates the increasing use of India’s IFSC infrastructure for offshore fundraising. Track similar Indian law firm deal mandates at Deal Meter.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
