Debt Market at IFSC: Landscape, Trends and Outlook 2025–26

Table of Contents MESSAGE FROM CHAIRPERSON .................................................................................................. 5 EXECUTIVE SUMMARY ................................................................................................................... 7 MARKET PERSPECTIVES ............................................................................................................... 9 1. GLOBAL DEBT MARKET LANDSCAPE ................................................................................. 10 1.1 Global Debt Markets in Transition............................................................................................. 10 1.2 Emerging Trends Shaping Global Debt Markets .................................................................. 11 1.2.1 Sustainable Finance ................................................................................................................ 11 1.2.2 Refinancing and Funding Requirements ........................................................................ 11 1.2.3 Artificial Intelligence and Digital Infrastructure ......................................................... 11 1.2.4 Evolving Investor Base........................................................................................................... 12 1.3 Key Takeaway................................................................................................................................ 12 2. INDIA'S DEBT MARKET: GLOBAL PERSPECTIVES AND THE ROLE OF IFSC ............ 13 2.1 Debt Markets and India's Development Imperative ........................................................... 13 2.2 Accessing Global Capital: The Need for International Financing Channels ............... 14 2.3 Role of IFSC ......................................................................................................................................... 14 2.4 Key Takeaway .................................................................................................................................... 15 3. Evolution and Performance of Debt Markets at IFSC ................................................... 16 3.1 Evolution of Debt Markets at IFSC ............................................................................................. 16 3.2 Outstanding Debt Securities ........................................................................................................ 16 3.3 Debt Listing Activity during FY2025–26 ................................................................................ 18 3.4 Sectoral Distribution ....................................................................................................................... 18 3.5 Top Issuers .......................................................................................................................................... 19 3.6 Instrument Profile ........................................................................................................................... 20 3.7 Currency Profile ................................................................................................................................ 20 3.8 Maturity Profile ................................................................................................................................. 21 3.9 Issue Size Distribution ................................................................................................................... 21 3.10 Placement Method ........................................................................................................................ 21 4. SUSTAINABLE FINANCE AT IFSC ........................................................................................... 22 4.1 Sustainable Finance: An Emerging Opportunity .................................................................. 22 4.2 Growth of ESG-labelled Debt Listings at IFSC ....................................................................... 22 4.3 ESG-labelled Bond Framework at IFSC .................................................................................... 23 4.4 ESG Instrument Composition during FY2025–26 ............................................................... 24 4.5 Transition Finance: The Next Phase of Sustainable Finance ........................................... 24 25. MARKET INFRASTRUCTURE SUPPORTING GROWTH ................................................... 25 5.1 Building a Complete Debt Market Ecosystem ....................................................................... 25 5.1.1 International Exchanges ............................................................................................................ 25 5.1.2 Depository Infrastructure ......................................................................................................... 26 5.1.3 Debenture Trustees ..................................................................................................................... 26 5.1.4 Credit Rating ................................................................................................................................... 26 6. MARKET MILESTONES AND STRATEGIC DEVELOPMENTS .......................................... 27 6.1 Strategic International Partnerships ........................................................................................ 27 6.2 Notable Transaction: ReNew Treasury IFSC .......................................................................... 28 6.3 Notable Transaction: DFCC Bank PLC ...................................................................................... 29 6.4 Concluding Remarks ....................................................................................................................... 29 7. OUTLOOK ..................................................................................................................................... 30 7.1 Global & Macroeconomic Environment ................................................................................... 30 7.2 Policy and Regulatory Drivers ..................................................................................................... 30 7.3 External Commercial Borrowing (ECB) Reforms ................................................................ 31 7.4 Future Market Development Initiatives .................................................................................. 31 7.5 Expected Growth Drivers .............................................................................................................. 32 34MESSAGE FROM CHAIRPERSON The global financial landscape is undergoing a period of profound transformation. Elevated financing requirements, shifting investor preferences, technological advancements, sustainability imperatives and evolving geopolitical dynamics are reshaping capital flows across jurisdictions. In this environment, efficient and resilient debt markets play a critical role in mobilising long-term capital, facilitating risk transfer and supporting economic growth. For India, the journey towards becoming a developed economy by 2047 will require substantial investments across infrastructure, energy transition, manufacturing, digital innovation and urban development. While the banking system will continue to play an important role in meeting these financing needs, deep and diversified debt markets are equally essential for ensuring efficient allocation of capital and enhancing financial stability. Since its establishment, GIFT International Financial Services Centre (IFSC) has progressively evolved into a gateway connecting India with global capital markets. The IFSC is emerging as a platform that enables issuers and investors to access global opportunities with greater efficiency and transparency, supported by globally benchmarked regulations. The debt market ecosystem at IFSC has witnessed notable progress in recent years. The increasing participation of domestic and international issuers, the emergence of sustainable finance instruments, growing diversity in issuers and investors, and the strengthening of market infrastructure collectively demonstrate the growing relevance of the IFSC in the international capital market landscape. As of March 31, 2026, cumulative debt listings on stock exchanges operating in IFSC is USD 70.31 billion, while cumulative ESG-labelled debt listings stand at USD 16.80 billion, reflecting the growing scale and maturity of the ecosystem. This report, “Debt Market at IFSC: Landscape, Trends and Outlook 2025–26”, provides a comprehensive assessment of developments in the debt market ecosystem during the financial year 2025–26. It places the developments within the broader context of global debt market trends and highlights the opportunities and challenges that lie ahead. As IFSC enters its next phase of growth, the focus will remain on fostering innovation, enhancing market depth, strengthening investor participation and facilitating efficient cross-border capital formation. We remain committed to building a globally competitive international financial centre that contributes meaningfully to India's economic aspirations while serving the financing needs of a rapidly evolving global economy. 5I congratulate all stakeholders whose continued efforts have contributed to the development of the debt market ecosystem at IFSC and hope that this publication serves as a useful reference for policymakers, market participants, researchers and investors. K. Rajaraman Chairperson, IFSCA 6EXECUTIVE SUMMARY The International Financial Services Centre (IFSC) at the GIFT City has continued to strengthen its position as an emerging international debt market ecosystem, supported by a globally aligned regulatory framework, modern market infrastructure and a growing network of financial institutions and intermediaries. FY2025–26 marked another important year in the evolution of the debt markets at IFSC. ❖ USD 5.20 billion of debt securities listed through 30 listings ❖ USD 70.31 billion cumulative debt listings, with USD 49.20 billion outstanding as of March 2026, compared to USD 624 billion total outstanding India's domestic corporate bond market (i.e. approximately 8% of domestic bond market). ❖ USD 16.80 billion cumulative ESG-labelled debt listings as of March 2026 ❖ February 2026 emerged as the most active month with over USD 1.21 billion in listings ❖ More than 99% of listing volume were denominated in USD ❖ All listings were undertaken through private placements, reflecting strong institutional investor participation Debt listing activity remained resilient despite elevated global interest rates, geopolitical uncertainties and evolving investor sentiment. Several important milestones were achieved during the year. The listing of bonds by DFCC Bank PLC, Sri Lanka, marked the first debt listing by a foreign corporate issuer on stock exchanges operating in IFSC. The transaction represents a significant milestone in the internationalisation of the market and demonstrates the growing ability of IFSC to facilitate cross-border capital raising activities. Another landmark development was the first debt issuance by a Treasury Centre established in IFSC. ReNew Treasury IFSC Private Limited successfully raised USD 600 million through a green bond issuance, highlighting the growing role of IFSC as a treasury and financing hub for multinational and Indian corporate groups. The year also witnessed strong participation from repeat issuers, reflecting increasing confidence in the IFSC ecosystem. At the same time, Mumbai International Airport Limited undertook the largest debt listing of the year of USD 800 million, demonstrating the ability of IFSC to support large-scale financing requirements. 7Sustainable finance remained an important component of market activity during FY2025–26. ESG-labelled debt instruments accounted for a significant share of annual listings, reflecting growing investor and issuer interest in sustainable financing solutions. The newly introduced Transition Bonds Framework by IFSCA in July 2025 is expected to further expand the sustainable finance ecosystem and position IFSC, to support financing requirements for hard-to-abate sectors undertaking decarbonisation efforts. The continued development of exchanges, depositories, trustees, credit rating agencies, investment bankers and other market participants has contributed to the emergence of a comprehensive debt market ecosystem within IFSC. The participation of internationally recognised institutions and globally active intermediaries has enhanced market credibility, improved access to international investors and strengthened the overall competitiveness of IFSC as a destination for debt capital market activities. As global financing requirements continue to grow, IFSC is well positioned to further strengthen its role as a gateway connecting issuers with international pools of capital. Increasing participation from overseas issuers, expansion of sustainable finance products, growth of treasury centre activities and new initiatives to deepen secondary market liquidity are expected to support the next phase of development of debt market in IFSC. ***** 8MARKET PERSPECTIVES NSE International Exchange India International Exchange IFSC Exchange IFSC Exchange “GIFT IFSC has rapidly emerged as a preferred “GIFT IFSC has rapidly evolved into a globally global listing destination recognized International especially for Indian Financial Centre, Issuers and onshore the attracting growing offshore listing. The IFSC interest from Exchanges have international investors streamlined the listing and market participants. process with world class INDIA INX has been at the process and systems. forefront of this Under this progressive transformation, building and forward-looking a technology-driven ecosystem, NSEIX is proud to lead the listings marketplace that offers 22-hour trading access ecosystem with over 73% of listings in 2025-26. and a diverse suite of products for global investors. While reinforcing GIFT City’s position as a leading As the market leader in debt listings within GIFT hub for sustainable listings, NSEIX is also IFSC, with over USD 64 billion listed on the championing sustainable finance opportunities for Exchange, INDIA INX has become a preferred investors and issuers.” platform for cross-border capital raising. Supported by a unified regulatory framework, the V. Balasubramaniam | MD & CEO, NSE International ecosystem provides agility, efficiency, and Exchange (NSEIX) certainty, further strengthening GIFT IFSC's position as a compelling destination for global capital.” Vijay Krishnamurthy | MD & CEO, India International Exchange IFSC Limited (INDIAINX) 91. GLOBAL DEBT MARKET LANDSCAPE This chapter provides an overview of recent developments in global debt markets and the evolving trends influencing international capital raising. 1.1 Global Debt Markets in Transition Debt markets remain a critical component of the global financial system, supporting financing requirements across governments, corporations and financial institutions. Over the past decade, global debt bond issuance reached a record USD 6.8 markets have expanded significantly, trillion, while outstanding corporate driven by sustained investment in bonds stood at USD 36.4 trillion at the infrastructure, technological innovation, end of 2025. These developments energy transition and broader economic underscore the continued importance of development. At the same time, debt market-based financing and the ability of markets have continued to adapt to global debt markets to support capital changing macroeconomic conditions, raising even in a challenging operating evolving investor preferences and environment. shifting financing requirements. The expansion of global corporate bond Despite elevated interest rates, markets has been supported by both geopolitical uncertainties and tighter financial and non-financial issuers. While financial conditions, global debt markets financial institutions continue to account remained resilient during 2025. for a significant share of issuance activity, According to the OECD, global corporate non-financial corporates have increasingly utilised debt markets to finance investment, infrastructure, business expansion and innovation. 10instruments available to issuers and contributed to greater diversification within debt markets. 1.2.2 Refinancing and Funding Requirements A substantial volume of debt raised Figure 1.1.a: Global Corporate Bond Issuance during periods of accommodative (2000–2025) monetary conditions is expected to Source: OECD, Global Debt Report 2025 mature over the coming years. As a result, refinancing requirements are likely to remain an important driver of debt market activity, prompting issuers to access capital markets to refinance existing obligations and support future investment plans. 1.2.3 Artificial Intelligence and Figure 1.1.b: Outstanding Global Corporate Bonds Digital Infrastructure (2000–2025) Source: OECD, Global Debt Report 2025 The rapid expansion of artificial intelligence and digital infrastructure is emerging as a new 1.2 Emerging Trends source of financing demand globally. Shaping Global Debt Investments in data centres, computing infrastructure, cloud services and digital Markets networks are expected to require Global debt markets are being shaped by significant capital expenditure over the several structural trends that are coming years. Debt markets are expected influencing financing patterns and to play an important role in financing investor preferences. these investments, further reinforcing their role in supporting technological transformation. 1.2.1 Sustainable Finance Sustainable finance has become an Notably, this financing wave is already increasingly important segment of global visible in global markets, hyperscalers debt markets. Green, social, issued record volumes of investment- sustainability and sustainability-linked grade bonds during 2025 and 2026 to bonds continue to attract significant fund AI infrastructure buildouts, a scale investor interest as governments, of borrowing significant enough to corporates and financial institutions influence credit spreads and supply mobilise capital to support dynamics across the broader corporate environmental and social objectives. The bond market. growth of sustainable finance has expanded the range of financing 111.2.4 Evolving Investor Base 1.3 Key Takeaway The increasing participation of Global debt markets continue to evolve in institutional investors, investment funds response to changing financing needs, and global asset managers has investor preferences and economic contributed to the growth and liquidity conditions. Sustainable finance, of debt markets. The evolving investor refinancing requirements and emerging base has supported broader market investment themes such as digital participation and enhanced the ability of infrastructure are shaping the future issuers to access diversified sources of direction of debt markets and capital. influencing capital flows across jurisdictions. 122. INDIA'S DEBT MARKET: GLOBAL PERSPECTIVES AND THE ROLE OF IFSC The evolution of IFSC's debt market cannot be viewed in isolation from India's broader financing landscape. This chapter places India's debt market in a global context and examines how IFSC complements the domestic financial system by facilitating access to international sources of capital. 2.1 Debt Markets and India's Development Imperative India's aspiration to become a developed economy by 2047 will require sustained investments across infrastructure, The depth of corporate bond markets manufacturing, logistics, renewable varies significantly across economies. In energy, digital infrastructure and urban mature financial systems, bond markets development. Financing these play an important role in mobilising investments efficiently will be critical to capital for businesses and supporting supporting economic growth, enhancing economic development. competitiveness and supporting the country's long-term development As illustrated in Figure 2.1, corporate objectives. bond markets differ considerably in both size and depth across jurisdictions. Historically, bank lending has been the While the United States and China host dominant source of corporate financing the world's largest corporate bond in India. However, as investment markets, several Asian economies have requirements continue to expand, the also developed substantial bond market role of market-based financing is ecosystems. In comparison, India's expected to increase. Well-developed corporate bond market stood at debt markets can provide long-term approximately USD 645 billion, capital, diversify funding sources and representing around 17% of GDP. This improve the resilience of the financial indicates significant scope for further system. market development and highlights the importance of strengthening both domestic and international debt financing channels to support India's growing investment requirements. 132.2 Accessing Global Capital: Corporate Bond Market Size The Need for International 76 14000 80 Financing Channels 12000 11549 70 55 10000 60 As economies are being increasingly 7712 50 interconnected, access to international 8000 37 38 40 pools of capital has become an important 6000 27 23 30 component of corporate financing 4000 17 17 20 strategies. International debt markets 9 1400 2000 708 645 10 provide issuers with access to a broader 234 164 141 44 0 0 investor base, diversified funding sources and financing across different currencies and maturities. For sectors USD Bn Size as % of GDP such as infrastructure, renewable energy Figure 2.1 Size of Corporate Bond Markets across and financial services, global capital can selected economies as a % of GDP complement domestic financing Source: BIS (data as of September 2025); channels by supporting large-scale and CareEdge Ratings long-term investment requirements. India's corporate bond market has witnessed sustained expansion over the 2.3 Role of IFSC past decade, with outstanding corporate bonds increasing from ₹20.19 trillion in The International Financial Services FY2016 to ₹59.09 trillion in FY2026, Centre (IFSC) at GIFT City was representing a compound annual growth established to create a globally rate (CAGR) of more than 11%. The competitive financial ecosystem capable market now accounts for around 17% of of serving international financial market GDP, reflecting the steady development participants from within India. Through of India's domestic debt capital market. a globally aligned regulatory framework and internationally benchmarked Despite this progress, India's corporate market infrastructure, IFSC facilitates bond market continues to offer cross-border financial transactions and significant potential for further capital market activities. expansion, particularly when compared with more mature Asian bond markets For debt markets, IFSC provides a such as Hong Kong (26%), Thailand platform through which issuers can (21%) and Korea (19%) as a percentage access international investors and raise of GDP. Rising financing requirements, capital in foreign currencies through a continued financial sector reforms, and recognised and regulated ecosystem. The greater participation by domestic and framework supports a wide range of debt international investors provide instruments, including conventional substantial headroom for further market debt securities, ESG-labelled deepening. instruments and other capital market products. 14securities of USD 49.20 billion Debt Listings in IFSC outstanding as of March 2026, compared 70.31 to USD 624 billion total outstanding 65.11 56.51 India's domestic corporate bond market 50.67 (i.e. approximately 8% of domestic bond 45.32 market, highlighting the growing significance of GIFT IFSC in channelling international capital to Indian and global 42.1 42.5 42.0 44.7 49.2 issuers. 2.4 Key Takeaway Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 India's long-term growth ambitions Combined Debt Outstanding Cumulative Debt Listings require deep, diversified and globally Figure 2.2 Growth of Debt Listings at IFSC (USD connected debt markets. By facilitating Billion) access to international pools of capital through a globally aligned ecosystem, Since the commencement of debt listings IFSC complements domestic financing in 2017, IFSC exchanges have facilitated channels and supports India's cumulative debt listings of USD 70.31 integration with global financial markets. billion, with outstanding listed debt 153. Evolution and Performance of Debt Markets at IFSC While the previous chapter provides the broader context for the role of IFSC, this chapter examines how that ecosystem is reflected in market activity. It presents an overview of debt listings during FY2025– 26 and highlights the key characteristics of the debt market at IFSC. 3.1 Evolution of Debt Markets at IFSC Since the first debt listing in 2017, the IFSC debt market has evolved into an important platform for international capital raising. Annual listing volumes 3.2 Outstanding Debt increased from USD 2.8 billion in FY2018 Securities to a peak of USD 18.19 billion in FY2022. While activity moderated in subsequent As of March 31, 2026, cumulative debt years amid changing global financing listings on IFSC exchanges stood at USD conditions, the market remained 71.31 billion. Of these, securities USD resilient and recorded debt listings of 49.2 billion outstanding as on March 31, USD 5.20 billion during FY2025–26. 2026. Annual Debt Listings in USD Bn The outstanding portfolio exhibited a 20.00 18.19 well-diversified maturity profile, 18.00 reflecting the market's ability to support 16.00 financing requirements across a broad 14.00 range of tenors. 11.37 12.00 10.00 As illustrated in Figure 3.2.a, the 8.60 7.42 outstanding debt market comprises 8.00 6.00 5.54 5.36 5.84 5.20 securities maturing between 2026 and 2061, together with Additional Tier-1 4.00 2.80 (AT1) instruments. The largest 2.00 concentration of outstanding securities 0.00 is scheduled to mature between 2027 FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23 FY-24 FY-25 and 2030, with 2027 accounting for the Figure 3.1 Annual Debt Listings at IFSC (FY2018– FY2026) highest number of outstanding securities (43). 16AT1 3 AT1 1700.3 2061 1 2061 750.0 2051 1 2051 1750.0 2049 1 2049 300.0 2044 1 2044 750.0 2041 2 2041 859.0 2040 1 2040 500.0 2039 1 2039 363.0 2035 2 2035 1000.0 2033 3 2033 984.8 2032 1 2032 1000.0 2031 9 2031 4545.0 2030 16 2030 6255.2 2029 32 2029 8530.0 2028 30 2028 7229.2 2027 43 2027 8676.8 2026 12 2026 4027.0 0 20 40 60 0.0 2000.0 4000.0 6000.0 8000.010000.0 Figure 3.2.a: Outstanding Debt Securities by Figure 3.2.b: Outstanding Debt Securities by Maturity Year (Number of Securities) Maturity Year (Outstanding Amount, USD Million) The distribution by outstanding value, presented in Figure 3.2.b, mirrors the maturity profile by number of securities. Outstanding debt maturing between 2027 and 2030 totals approximately USD 30.7 billion, representing around 62% of the total outstanding debt value. 173.3 Debt Listing Activity Monthly Issuance in USD Mn during FY2025–26 1,210 1,115 1,055 Debt listing activity at IFSC remained steady during FY2025–26 despite a 800 global environment characterised by 620 elevated interest rates, evolving monetary policy conditions and 300 geopolitical uncertainties, including the market volatility triggered by the April 23 58 4 17 2025 tariff announcements and the subsequent escalation of the West Asia crisis. Notably, listing activity Monthly Issuance in USD Mn strengthened through the second half of Figure 3.3: Monthly Debt Listing Activity during FY2025–26 the financial year, with September, January and February emerging as the The year also witnessed important most active months, suggesting that IFSC market milestones, including the first issuers and investors were able to look debt listing by a foreign corporate issuer through short-term geopolitical volatility and the first debt listing by a treasury to execute planned transactions. centre established within IFSC. Listing activity was observed throughout 3.4 Sectoral Distribution the financial year, with volumes The sectoral composition of debt listings concentrated in a few key months. at IFSC during FY2025–26 continued to February 2026 emerged as the most be dominated by the financial services active month, recording debt listings of sector. Of the 30 debt listings during the approximately USD 1.21 billion, followed year, 29 listings were undertaken by by September 2025 (USD 1.12 billion) entities in the finance and banking sector, and January 2026 (USD 1.06 billion). The while one listing originated from the concentration of activity during these infrastructure sector. months was supported by several large transactions, while other periods In value terms, issuances from the reflected issuers' varying funding finance and banking sector amounted to requirements and prevailing market approximately USD 4.40 billion, conditions. accounting for nearly 85% of the total debt listings during the year. The infrastructure sector contributed USD 800 million, representing around 15% of the total listing volume (Figure 3.4.b). 18The predominance of financial sector through debt capital market issuers is consistent with global market instruments. practices, where financial institutions actively access debt markets to diversify Among all issuers, Muthoot Finance funding sources, optimise funding Limited emerged as the largest issuer by structures and manage asset-liability listing volume during FY2025–26, requirements. raising USD 1.35 billion, accounting for 26 per cent of total debt listings during The issuer base comprised a mix of the year. Export-Import Bank of India, established market participants and Mumbai International Airport Limited, repeat issuers. Sammaan Capital Limited and ReNew Treasury IFSC Private Limited were among the other major issuers by listing Sector Wise Distribution volume. A notable feature of the year was the Infrastructure 1 presence of several repeat issuers, highlighting the growing use of IFSC as a platform for recurring funding requirements and ongoing market access. DFCC Bank PLC emerged as the Finance and Banking 29 active issuer, accessing the market on seven occasions during the financial year. 0 10 20 30 40 Muthoot Finance Limited completed Figure 3.4.a: Sectoral Distribution of Debt three listings, while Export-Import Bank Issuances during FY2025–26 of India, Annapurna Finance Private Limited and Aye Finance Limited each undertook two listings. In total, nine Total Issuances In USD Mn issuers accessed the market more than once during FY2025–26. Infrastructure 800 Issuer USD Mn Share Muthoot Finance 1,350 26% Exim Bank 1,000 19% Finance and Banking 4402 Mumbai International 800 15% 0 1000 2000 3000 4000 5000 Airport Figure 3.4.b: Listing Volume by Sector (USD Sammaan Million) FY2025–26 750 14% Capital 3.5 Top Issuers ReNew Treasury 600 12% IFSC Debt listing activity during FY2025–26 was supported by a diverse group of Figure 3.5.a: Top Five Issuers by Issuance Volume during FY2025–26 issuers that utilised IFSC to access international investors and raise funding 19Repeat Issuances Instrument Distribution Fixed Floating Zero Coupon 7 6 sre u ss I fo .o N 1 1 Issuances , 10 7 Occurences 3 Occurences 2 Occurences 1 Occurrence Frequency Issuers Issuances , 17 Issuances , 3 7 Listings DFCC Bank PLC 3 Listings Muthoot Finance Limited Figure 3.6: Distribution of Debt Instruments by Export-Import Bank of India Number of Listings during FY2025–26 Annapurna Finance Pvt Ltd. Aye Finance Ltd. Alliance Fixed-rate bonds carried coupon rates 2 Listings Finance Company ranging from 4.5 per cent to 12.0 per Credit Access Grameen Ltd. Sammaan Capital Ltd. Vedika cent. Floating-rate instruments were Credit Capital Ltd. predominantly linked to the Secured Table 3.5.b: Repeat Issuers during FY2025–26 Overnight Financing Rate (SOFR) and were issued at spreads ranging from 3.6 Instrument Profile SOFR +2.40 per cent to SOFR +4.95 per cent. Debt listings admitted to listing during the year, comprise of 17 fixed-rate instruments, 10 floating-rate 3.7 Currency Profile instruments and 3 zero-coupon The IFSCA regulatory framework instruments (Figure 3.6). While fixed- permits the listing of debt securities in rate instruments accounted for the 15 specified foreign currencies, highest number of listings, they also providing issuers with flexibility to represented approximately USD 5.07 access international capital markets. billion, or 97.5 per cent of the total debt listing value during the year. Floating- During FY2025–26, debt listings rate instruments accounted for USD 127 remained predominantly denominated million, whereas zero-coupon in the United States Dollar (USD), with instruments represented only a marginal more than 99 per cent of the total listing share of the overall market. value raised in USD. The remaining listing was denominated in Sri Lankan Rupee (LKR). 203.8 Maturity Profile market to facilitate both smaller fund- raising requirements and large cross- The maturity profile of debt securities border debt transactions. listed during FY2025–26 reflects a range of funding tenors available to issuers As shown in Table 3.9, 14 debt listings through the IFSC debt market. were for amounts of up to USD 10 million, 6 were between USD 11 million As illustrated in Figure 3.8, debt listings and USD 100 million, and 10 exceeded were distributed across maturities from USD 100 million. While large issuances 2027 to 2036, with the highest number of represented only one-third of the total listings maturing in 2028, followed by number of listings, they accounted for 2030. approximately 96 per cent of the total listing value during the year. Maturity Profile Listing No. of 16 Issue Size Value 14 Listings 14 (USD Mn.) Up to USD 10 12 14 57 Mn. 10 USD 11–100 8 7 6 145 Mn. 6 Above USD 4 10 5000 4 100 Mn. 2 2 2 1 Total 30 5202 Table 3.9: Distribution of Debt Listings by Issue 0 2027 2028 2029 2030 2031 2036 Size No. of Issuances 3.10 Placement Method Figure 3.8: Maturity Profile of Debt Listings The debt market at IFSC continues to be during FY2025–26 predominantly institutional in nature. 3.9 Issue Size Distribution During FY2025–26, all 30 debt listings were undertaken through private Debt listings during FY2025–26 placement, reflecting the participation of comprised a wide range of issue sizes, professional and institutional investors. reflecting the ability of the IFSC debt 214. SUSTAINABLE FINANCE AT IFSC The previous chapter examined the overall characteristics of debt market activity at IFSC. This chapter takes a closer look at sustainable finance, highlighting its evolution as a distinct segment within the broader debt market ecosystem. 4.1 Sustainable Finance: An Emerging Opportunity Sustainable finance has become an increasingly important segment of global capital market, enabling governments, financial institutions and corporates to mobilise capital for climate transition, sustainable infrastructure and broader 4.2 Growth of ESG-labelled environmental and social objectives. As Debt Listings at IFSC investment requirements associated with the transition to a low-carbon Sustainable finance has emerged as an economy continue to grow; sustainable important segment of debt market debt instruments have emerged as an activity at IFSC, with a steady increase in important source of long-term financing. the use of ESG-labelled debt instruments by issuers seeking to access international Against this backdrop, IFSC has emerged capital. as a platform for sustainability-oriented capital raising through a globally aligned As of March 31, 2026, cumulative ESG- regulatory framework for listing of ESG- labelled debt listings at IFSC reached labelled debt securities. The continued USD 16.80 billion. During FY2025–26, growth of ESG-labelled debt listings and cumulative ESG listings increased from the introduction of new sustainable USD 15.43 billion to USD 16.80 billion, finance initiatives reflect the increasing representing a 9% year-on-year growth. importance of sustainable finance within the IFSC debt market ecosystem. 224.3 ESG-labelled Bond Cumulative ESG Listing in USD Bn Framework at IFSC 16.80 18.00 15.43 16.00 The development of sustainable finance 14.00 12.31 at IFSC has been supported by a 12.00 9.28 regulatory framework aligned with 10.00 7.28 8.00 internationally recognised market 6.00 practices. 4.00 1.45 1.95 2.05 0.80 2.00 0.00 The IFSCA (Listing) Regulations, 2024 provides a framework for the listing of ESG-labelled debt securities within IFSC. Figure 4.2.a: Cumulative ESG-labelled Debt The framework facilitates the listing of Listings at IFSC (as of March 31, 2026) Green Bonds, Social Bonds, Sustainable While cumulative listings reflect the Bonds and Sustainability-linked Bonds, overall expansion of the sustainable thereby enabling issuers to access capital finance ecosystem, annual listing activity for activities that contribute to provides insights into year-to-year environmental and social objectives. market dynamics and issuer participation. To ensure alignment with global market practices and investor expectations, the framework recognises internationally ESG Listing in USD Mn accepted principles and standards, including the International Capital FY-26 1374.7 Market Association (ICMA) Principles FY-25 3117.5 and Guidelines, Climate Bonds Standard, FY-24 3028.0 FY-23 2000.0 ASEAN Standards and European Union FY-22 5234.0 Standards. The framework also provides FY-21 100.0 flexibility for recognising other FY-20 500.0 methodologies and standards as may be FY-19 650.0 specified by IFSCA from time to time. FY-18 799.7 0.0 1000.0 2000.0 3000.0 4000.0 5000.0 6000.0 Figure 4.2.b: Annual ESG-labelled Debt Listings Annual ESG-labelled debt listings have remained resilient over the years, reflecting sustained issuer interest in sustainable financing through IFSC. During FY2025–26, ESG-labelled debt listings amounted to USD 1.37 billion, accounting for 26 % of the total debt listing volume during the year. Figure 4.3: Framework for ESG-labelled Bonds at IFSC 234.4 ESG Instrument 4.5 Transition Finance: The Composition during Next Phase of Sustainable FY2025–26 Finance As illustrated in Figure 4.4, Social Bonds As global climate financing needs evolve, constituted the largest category of ESG- increasing attention is being directed labelled debt listings during the year. towards transition finance to support Social Bond listings amounted to USD hard-to-abate sectors in their transition 756.63 million, while Green Bond listings towards lower-carbon operations. totalled USD 617.94 million. Recognising this emerging need, IFSCA introduced the Framework for Bond Label Transition Bonds on July 29, 2025. The framework facilitates capital raising by entities undertaking credible transition efforts while promoting appropriate standards of transparency and 45% disclosure. 55% The introduction of the Framework for Transition Bonds expands the range of Green Bond Social Bond sustainable finance instruments available at IFSC and strengthens its Figure 4.4: Composition of ESG-labelled Debt position as a platform for supporting the Listings during FY2025–26 transition to a low-carbon economy. Among the Green Bond issuances was a USD 9.73 million Blue Bond issued by DFCC Bank PLC, Sri Lanka, marking Sri Lanka's first Blue Bond and the first Blue Bond to be listed on an IFSC stock exchange. 245. MARKET INFRASTRUCTURE SUPPORTING GROWTH The growth of a debt market is closely 5.1.1 International Exchanges linked to the strength of the ecosystem that supports issuance, settlement and Stock exchanges play a central role in other market functions. This chapter facilitating debt listings and connecting examines the institutions that form this issuers with investors. IFSC is home to ecosystem and their contribution to the two recognised international stock development of the debt market at IFSC. exchanges: ▪ India International Exchange (India 5.1 Building a Complete INX) Debt Market Ecosystem ▪ NSE International Exchange (NSE IX) The growth of debt markets at IFSC has been supported by the development of a These exchanges provide internationally complete ecosystem comprising recognised listing venues for debt exchanges, depositories, debenture securities and support a wide range of trustees, investment bankers, credit capital market activities. Their presence rating agencies and other professional has been instrumental in the service providers. development of debt markets at IFSC by providing issuers with efficient access to Together, these institutions facilitate the international investors and facilitating complete lifecycle of debt securities from listing activities across diverse financing structuring and issuance to listing, structures. settlement and post-listing compliance enabling issuers to access international During FY2025–26, debt listings were investors through an efficient and distributed across both exchanges, globally aligned market framework. reflecting active participation by market participants and the complementary role played by the two institutions in supporting market development. 25During FY2025–26, 17 debt listings Listing Distribution on appointed foreign trustees, while 12 International Exchanges at GIFT IFSC listings utilised IFSC-based trustees. (Figure 5.1.3). Dual Listed NSEIX 10 Listings Exclusive The distribution reflects the use of both 33% 12 Lisitngs 40% IFSC-based and international trustee arrangements, providing issuers with India INX flexibility to structure debt transactions Exclusive 8 Listings NSEIX Exclusive in line with market requirements. 27% India INX Exclusive Dual Listed Debenture Trustee Figure 5.1.1: Distribution of Debt Listings across Exchanges 5.1.2 Depository Infrastructure During FY2025–26, 10 debt listings with an aggregate value of approximately USD 127 million used the services of IIDI, while the remaining 20 listings, Foreign aggregating USD 5.07 billion, were IFSC settled through international CSDs, No Trustee including Euroclear, Clearstream and CDS Pvt. Limited (Figure 5.2). Figure 5.1.3 Trustee Jurisdiction Distribution 5.1.4 Credit Rating International Depositories - Issuance Distribution Credit ratings support investor decision- making, enhance market transparency IIDI and facilitate efficient pricing of debt 33% securities. As on March 31, 2026, two Credit Rating Other Agencies registered with IFSCA. During ICSDs 67% FY2025–26, 29 of the 30 debt listings, IIDI Other aggregating approximately USD 5.15 billion, obtained credit ratings from a combination of regional and globally Figure 5.1.2 Depository Distribution of Debt Listings recognised rating agencies, including CareEdge Global Ratings, S&P Global 5.1.3 Debenture Trustees Ratings, Moody's Ratings, Fitch Ratings, IFSC has five IFSCA-registered Debenture Fitch Ratings Lanka Limited and Lanka Trustees, providing trustee services for Rating Agency Limited. debt securities listed at IFSC. 266. MARKET MILESTONES AND STRATEGIC DEVELOPMENTS The continued development of the IFSC debt market is reflected not only in market activity but also in the strategic developments that strengthen the ecosystem. This chapter highlights significant partnerships and landmark transactions that demonstrate the growing maturity and internationalisation of the IFSC debt market. 6.1 Strategic International Partnerships International financial services centres thrive on connectivity. In recognition of During the year, exchanges operating in this, exchanges operating within IFSC IFSC expanded their international continued to strengthen relationships engagement through collaborations with with leading international exchanges stock exchanges and market institutions during FY2025–26 through strategic across Europe, Asia and Africa. Notable cooperation arrangements and partnerships included engagements with memoranda of understanding. the Cyprus Stock Exchange, Colombo Stock Exchange, AFRINEX Exchange and These collaborations are intended to Taiwan Stock Exchange. facilitate knowledge sharing, strengthen market connectivity, promote cross- These arrangements are expected to border capital market activities and support greater market access enhance engagement between issuers, opportunities, encourage international investors and intermediaries across participation and contribute to the jurisdictions. They also support the integration of IFSC with global capital broader objective of positioning IFSC as a markets. globally connected financial centre capable of serving international capital market participants. 27important milestone in the evolution of the IFSC debt market. The transaction demonstrated the ability of an IFSC-incorporated entity to originate, issue and list international debt securities from IFSC. It also highlighted the growing role of treasury centres in centralising group financing, Figure 6.1.a: MOU signing between NSEIX and treasury management and international Cyprus Stock Exchange. capital-raising activities. Figure 6.1.b: MOU signing between INDIA INX and Taiwan Stock Exchange. Beyond the transaction itself, the issuance validated the treasury centre model within IFSC and demonstrated the commercial advantages of undertaking international capital raising through an Figure 6.1.c MOU Signing between NSEIX and IFSC-based treasury centre, supported Colombo Stock Exchange during. by an internationally aligned regulatory framework, efficient market 6.2 Notable Transaction: infrastructure and the tax framework available within IFSC. ReNew Treasury IFSC One of the most significant developments The successful execution of the during FY2025–26 was the successful transaction establishes a replicable listing of a USD 600 million Green Bond model for corporates seeking to by ReNew Treasury IFSC Private Limited. centralise treasury operations and The transaction marked the first foreign access international pools of capital currency bond issuance by an IFSC- through GIFT IFSC. incorporated entity representing an 28From a broader perspective, the transaction highlighted the increasing internationalisation of the IFSC debt market and the growing diversity of issuers utilising the platform. It also underscored the potential for IFSC to facilitate regional capital market integration and support cross-border financing activities across neighbouring jurisdictions. Figure 6.2: Bell-ringing ceremony commemorating the first foreign currency bond The successful listing provides an listing by an IFSC-incorporated treasury centre. important precedent for future participation by overseas issuers and strengthens IFSC's position within the 6.3 Notable Transaction: regional capital market landscape. DFCC Bank PLC The listing of Green Bonds by DFCC Bank PLC, Sri Lanka, represented another important milestone for the IFSC debt market ecosystem during FY2025–26. The transaction marked the first debt listing by a foreign corporate issuer on a stock exchange operating within IFSC. The transaction demonstrated the Figure 6.3 Listing ceremony marking the first growing attractiveness of IFSC as a foreign corporate debt listing by a Sri Lankan platform for regional issuers seeking issuer on an exchange operating in IFSC. access to international investors and reinforced its role as a gateway 6.4 Concluding Remarks connecting South Asian issuers with global capital markets. The strategic developments and milestone transactions undertaken during FY2025–26 reflect the continued evolution of IFSC as an internationally connected debt market ecosystem. The expansion of global partnerships, growing participation by overseas issuers and successful execution of innovative financing transactions collectively demonstrate the increasing maturity of the market and its ability to support a broad range of cross-border capital raising activities. 297. OUTLOOK The outlook for FY 2026–27 points towards the continued expansion of the GIFT IFSC debt market, supported by a favourable global macroeconomic environment, an evolving regulatory framework, continued policy support and increasing international participation. As India's integration with global capital markets deepens, GIFT IFSC is well positioned to strengthen its role as an internationally recognised platform for cross-border debt financing and international capital mobilisation. 7.1 Global & Macroeconomic mobilisation, supporting higher levels of Environment debt issuance and listing activity during FY 2026–27. The global macroeconomic environment in FY 2026–27 is expected to remain 7.2 Policy and Regulatory broadly supportive, notwithstanding Drivers continued uncertainties arising from geopolitical developments, trade The regulatory and policy environment dynamics, and evolving global monetary is expected to remain one of the conditions. Against this backdrop, India's strongest structural drivers of debt macroeconomic fundamentals are market growth in FY 2026–27. Recent projected to remain resilient. According regulatory and fiscal initiatives are to the International Monetary Fund expected to strengthen the (IMF), India's real GDP is projected to competitiveness of GIFT IFSC, enhance grow by 6.5% in 2026, while average long-term investor confidence, and consumer price inflation is expected to support continued growth in debt moderate to 4.7%. market activity. India's resilient macroeconomic outlook The concessional withholding tax rate of is expected to support growing financing 9% has been a significant factor in requirements across infrastructure, attracting market participants to GIFT renewable energy, manufacturing, IFSC. Building on this competitive tax financial services and the broader energy framework, the Union Budget 2026–27 transition. As demand for long-term introduced further measures to capital increases, GIFT IFSC is well strengthen the long-term attractiveness positioned to facilitate cross-border debt of the IFSC ecosystem. The Hon'ble financing and international capital Finance Minister announced the 30extension of the tax holiday for eligible Act and permitted under applicable IFSC businesses from 10 consecutive law, thereby making Limited Liability years out of 15 years to 20 consecutive Partnerships (LLPs) eligible to raise years out of 25 years, followed by a ECB. concessional corporate tax rate of 15% thereafter. These measures provide ▪ Standardisation of the Minimum greater long-term tax certainty and are Average Maturity Period (MAMP) at expected to enhance investor confidence, three years, replacing the earlier end- particularly for businesses involving use linked maturity requirement of long-gestation investments. three to ten years. The extended tax incentives are likely to ▪ Permission for manufacturing encourage greater participation by long- entities to raise ECB with a minimum term investors in capital-intensive average maturity period of one to sectors such as aircraft leasing, ship three years, subject to an outstanding leasing, infrastructure financing, and borrowing limit of USD 150 million. other large-scale asset classes through GIFT IFSC, thereby supporting the ▪ Enhancement of the ECB borrowing continued expansion of the jurisdiction limit from USD 750 million to the as a global financial centre. higher of USD 1 billion outstanding or 300% of the borrower's net worth on a standalone basis, while continuing 7.3 External Commercial to exempt eligible borrowers Borrowing (ECB) Reforms regulated by financial sector regulators. The evolving External Commercial These reforms are expected to enhance Borrowing (ECB) framework is expected the efficiency and flexibility of India's to be an important catalyst for debt external borrowing framework. A more market growth in FY 2026–27. The liberal ECB regime could improve access proposed Revised ECB Framework seeks to foreign currency financing for Indian to liberalise India's ECB regime by corporates and financial institutions, simplifying borrower eligibility, increase demand for international debt standardising the Minimum Average instruments and support higher levels of Maturity Period (MAMP), easing end-use debt issuance and listing on IFSC provisions, enhancing operational exchanges, further strengthening GIFT flexibility and strengthening the IFSC's position as a preferred reporting and compliance framework. international capital-raising platform. Key proposed measures include: 7.4 Future Market Development Initiatives ▪ Expansion of borrower eligibility to any person resident in India—other In order to develop the corporate bond than an individual—that is market in IFSC, Standing Committee on incorporated, established or Primary markets has also recommended registered under a Central or State IFSCA to explore the following: 31▪ To establish electronic book building ▪ Effective implementation of the platform similar to electronic book proposed External Commercial provider platforms for debt securities Borrowing (ECB) reforms and the in domestic India. RBI's FX swap facility, supporting higher overseas bond issuances; ▪ Establish connectivity of Depository in IFSC with International Central ▪ Greater participation by banks, large Securities Depositories corporates and financial institutions in raising international debt through ▪ To establish Request for Quote GIFT IFSC; platform similar to Request for Quote platform in domestic jurisdiction ▪ Continued increase in the number of foreign issuers accessing the IFSC ▪ Creation of bond indices and bond capital markets; derivatives for hedging ▪ Expansion of treasury-centre ▪ Creation of tokenized bonds by financing and cross-border funding issuers in IFSC arrangements; 7.5 Expected Growth Drivers ▪ Greater utilisation of Medium-Term DFCC Bank PLC, Sri Lanka, became the Note (MTN) programmes and repeat first foreign corporate issuer to list Blue issuances; Bonds on IFSC stock exchanges, marking an important milestone in the ▪ Continued growth in sustainable geographical diversification of the finance, including green, social, market. The transaction reinforces GIFT sustainability, sustainability-linked IFSC's growing appeal as an international and blue bonds; fundraising platform and could catalyse debt issuances by corporates and ▪ Increased investor confidence financial institutions across Asia, Africa supported by India's sovereign rating and other emerging markets. upgrades; and Looking ahead, growth is expected to be ▪ A broader issuer base, including supported by: infrastructure financing and other emerging sectors. 3233