The International Financial Services Centres Authority (IFSCA) released the report “Debt Market at IFSC: Landscape, Trends, and Outlook 2025–26”, reviewing debt market developments at GIFT IFSC during FY2025–26. The report states that 30 debt listings amounting to USD 5.20 billion were completed during the year, taking cumulative debt listings to USD 70.31 billion, with USD 49.20 billion outstanding as of March 31, 2026, and cumulative ESG-labelled debt listings reaching USD 16.80 billion. It highlights the first debt listing by a foreign corporate issuer (DFCC Bank PLC, Sri Lanka), the first foreign currency bond issuance by an IFSC-incorporated treasury centre through ReNew Treasury IFSC Private Limited’s USD 600 million green bond, and Mumbai International Airport Limited’s USD 800 million listing. The report notes that over 99% of listings were denominated in USD and all were through private placements. It also outlines developments in sustainable finance, including the Transition Bonds Framework introduced in July 2025, reviews global and Indian debt market trends, market infrastructure, strategic partnerships, and presents the outlook for FY2026–27, including expected support from policy initiatives, ECB reforms, and continued international participation.

Below is an extract from the IFSCA Report, Debt Market at IFSC: Landscape, Trends, and Outlook 2025–26. This version is presented without the charts, graphs, and images. To read the complete report published by IFSCA, including all visuals, click here

INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY

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

A comprehensive review of debt market developments at GIFT IFSC and the global context shaping its evolution.

MESSAGE 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.

I 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.

Rajaraman
Chairperson, IFSCA

EXECUTIVE SUMMARY

International Financial Services Centre (IFSC) at 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 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.

Sustainable 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 Transition Bonds Framework introduced 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, Debenture 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.

*****

MARKET PERSPECTIVES

NSE International Exchange
IFSC Exchange

“GIFT IFSC has rapidly emerged as a preferred global listing destination especially for Indian Issuers and onshore the offshore listing. The IFSC Exchanges have streamlined the listing process with world class process and systems. Under this progressive and forward-looking
ecosystem, NSEIX is proud to lead the listings ecosystem with over 73% of listings in 2025-26. While reinforcing GIFT City’s position as a leading hub for sustainable listings, NSEIX is also championing sustainable finance opportunities for investors and issuers.”

v. Balasubramaniam | MD & CEO, NSE International Exchange (NSEIX)

India International Exchange
IFSC Exchange

“GIFT IFSC has rapidly evolved into a globally recognized International Financial Centre, attracting growing interest from international investors and market participants. INDIA INX has been at the forefront of this transformation, building a technology-driven
marketplace that offers 22-hour trading access and a diverse suite of products for global investors. As the market leader in debt listings within GIFT IFSC, with over USD 64 billion listed on the Exchange, INDIA INX has become a preferred platform for cross-border capital raising. Supported by a unified regulatory framework, the ecosystem provides agility, efficiency, and certainty, further strengthening GIFT IFSC’s position as a compelling destination for global capital.”

Vijay Krishnamurthy | MD & CEO, India International Exchange IFSC Limited (INDIAINX)

1. 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 markets have expanded significantly, driven by sustained investment in infrastructure, technological innovation, energy transition and broader economic development. At the same time, debt markets have continued to adapt to changing macroeconomic conditions, evolving investor preferences and shifting financing requirements.

Despite elevated interest rates, geopolitical uncertainties and tighter financial conditions, global debt markets remained resilient during 2025.

According to the OECD, global corporate bond issuance reached a record USD 6.8 trillion in 2025, while outstanding corporate bonds stood at USD 36.4 trillion at the end of 2025. These developments underscore the continued importance of market-based financing and the ability of global debt markets to support capital raising challenging environment. even in a operating The expansion of global corporate bond markets has been supported by both financial and non-financial issuers. While financial institutions continue to account for a significant share of issuance activity, non-financial corporates have increasingly utilised debt markets to finance investment, infrastructure,
business expansion and innovation.

Figure 1.1.b: Outstanding Global Corporate Bonds (2000–2025)

Source: OECD, Global Debt Report 2026

1.2 Emerging Trends Shaping Global Debt Markets

Global debt markets are being shaped by several structural trends that are influencing financing patterns and investor preferences.

1.2.1 Sustainable Finance

Sustainable finance has become an increasingly important segment of global debt markets. Green, social, sustainability and sustainability-linked bonds continue to attract significant investor interest as governments, corporates and financial institutions mobilise capital to support
environmental and social objectives. The growth of sustainable finance has expanded the range of financing instruments available to issuers and contributed to greater diversification within debt markets.

1.2.2 Refinancing and Funding Requirements

A substantial volume of debt raised during periods of accommodative monetary conditions is expected to 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 Digital Infrastructure

The rapid expansion of artificial intelligence and digital infrastructure is emerging as a new source of financing demand globally. Investments in data centres, computing infrastructure, cloud services and digital networks are expected to require significant capital expenditure over the coming years. Debt markets are expected to play an important role in financing these investments, further reinforcing their role in supporting technological transformation.

Notably, this financing wave is already visible in global markets, hyperscalers issued record volumes of investment-grade bonds during 2025 and 2026 to fund AI infrastructure buildouts, a scale of borrowing significant enough to influence credit spreads and supply dynamics across the broader corporate bond market.

1.2.4 Evolving Investor Base

The increasing participation of institutional investors, investment funds and global asset managers has contributed to the growth and liquidity of debt markets. The evolving investor base has supported broader market participation and enhanced the ability of issuers to access diversified sources of capital.

1.3 Key Takeaways

Global debt markets continue to evolve in response to changing financing needs, investor preferences and economic conditions. Sustainable finance, refinancing requirements and emerging investment themes such as digital infrastructure are shaping the future direction of debt markets and influencing capital flows across jurisdictions.

2. 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, manufacturing, logistics, renewable energy, digital infrastructure and urban development. Financing these investments efficiently will be critical to supporting economic growth, enhancing competitiveness and supporting the country’s long-term development objectives.

Historically, bank lending has been the dominant source of corporate financing in India. However, as investment requirements continue to expand, the role of market-based financing is expected to increase. Well-developed debt markets can provide long-term capital, diversify funding sources and improve the resilience of the financial system.

The depth of corporate bond markets varies significantly across economies. In mature financial systems, bond markets play an important role in mobilising capital for businesses and supporting economic development.

As illustrated in Figure 2.1, corporate bond markets differ considerably in both size and depth across jurisdictions. While the United States and China host the world’s largest corporate bond markets, several Asian economies have also developed substantial bond market ecosystems. In comparison, India’s corporate bond market stood at approximately USD 645 billion, representing around 17% of GDP. This indicates significant scope for further market development and highlights the importance of strengthening both domestic and international debt financing channels to support India’s growing investment requirements.

Figure 2.1 Size of Corporate Bond Markets across selected economies as a % of GDP

Source: BIS (data as of September 2025); CareEdge Ratings

India’s corporate bond market has witnessed sustained expansion over the past decade, with outstanding corporate bonds increasing from ₹20.19 trillion in FY2016 to ₹59.09 trillion in FY2026, representing a compound annual growth rate (CAGR) of more than 11%. The market now accounts for around 17% of GDP, reflecting the steady development of India’s domestic debt capital market.

Despite this progress, India’s corporate bond market continues to offer significant potential for further expansion, particularly when compared with more mature Asian bond markets such as Hong Kong (26%), Thailand (21%) and Korea (19%) as a percentage of GDP. Rising financing requirements, continued financial sector reforms, and greater participation by domestic and international investors provide
substantial headroom for further market deepening.

2.2 Accessing Global Capital: The Need for International Financing Channels

As economies are being increasingly interconnected, access to international pools of capital has become an important component of corporate financing strategies. International debt markets provide issuers with access to a broader investor base, diversified funding sources and financing across different currencies and maturities. For sectors such as infrastructure, renewable energy and financial services, global capital can complement domestic financing channels by supporting large-scale and long-term investment requirements.

2.3 Role of IFSC

The International Financial Services Centre (IFSC) at GIFT City was established to create a globally competitive financial ecosystem capable of serving international financial market participants from within India. Through a globally aligned regulatory framework and internationally benchmarked market infrastructure, IFSC facilitates cross-border financial transactions and capital market activities.

For debt markets, IFSC provides a platform through which issuers can access international investors and raise capital in foreign currencies through a recognised and regulated ecosystem. The framework supports a wide range of debt instruments, including conventional debt securities, ESG-labelled instruments and other capital market products.

Figure 2.2 Growth of Debt Listings at IFSC (USD Billion)

Since the commencement of debt listings in 2017, IFSC exchanges have facilitated cumulative debt listings of USD 70.31 billion, with outstanding listed debt securities of 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, highlighting the growing significance of GIFT IFSC in channelling international capital to Indian and global issuers.

*Source: SEBI, Outstanding Corporate Bond Statistics – March 31, 2026; Reserve Bank of India, Reference Rate, March 30, 2026 (₹94.65).

2.4 Key Takeaways

India’s long-term growth ambitions require deep, diversified and globally connected debt markets. By facilitating access to international pools of capital through a globally aligned ecosystem, IFSC complements domestic financing channels and supports India’s integration with global financial markets.

3. 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 2017-18, the IFSC debt market has evolved into an important platform for international capital raising. Annual listing volumes increased from USD 2.8 billion in FY2017-18 to a peak of USD 18.19 billion in FY2021-22. While activity moderated in subsequent years amid changing global financing conditions, the market remained resilient and recorded debt listings of USD 5.20 billion during FY2025–26.

Figure 3.1 Annual Debt Listings at IFSC

3.2 Outstanding Debt Securities

As of March 31, 2026, cumulative debt listings on IFSC exchanges stood at USD 70.31 billion. Of these, debt securities outstanding as on March 31, 2026, is USD 49.2 billion.

The outstanding portfolio exhibited a well-diversified maturity profile, reflecting the market’s ability to support financing requirements across a broad range of tenors.

As illustrated in Figure 3.2.a, the outstanding debt market comprises securities maturing between 2026 and 2061, together with Additional Tier-1 (AT1) instruments. The largest concentration of outstanding securities is scheduled to mature between 2027 and 2030, with 2027 accounting for the highest number of outstanding securities (43).

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.

3.3 Debt Listing Activity during FY2025–26

Debt listing activity at IFSC remained steady during FY2025–26 despite a global environment characterised by elevated interest rates, evolving monetary policy conditions and geopolitical uncertainties, including the market volatility triggered by the April 2025 tariff announcements and the subsequent escalation of the West Asia crisis. Notably, listing activity strengthened through the second half of the financial year, with September, January and February emerging as the most active months, suggesting that IFSC issuers and investors were able to look through short-term geopolitical volatility to execute planned transactions.

Listing activity was observed throughout the financial year, with volumes concentrated in a few key months. February 2026 emerged as the most active month, recording debt listings of approximately USD 1.21 billion, followed by September 2025 (USD 1.12 billion) and January 2026 (USD 1.06 billion). The concentration of activity during these months was supported by several large transactions, while other periods reflected issuers’ varying funding requirements and prevailing market conditions.

Figure 3.3: Monthly Debt Listing Activity during FY2025–26

The year also witnessed important market milestones, including the first debt listing by a foreign corporate issuer and the first debt listing by a treasury centre established within IFSC.

3.4 Sectoral Distribution

The sectoral composition of debt listings at IFSC during FY2025–26 continued to be dominated by the financial services sector. Of the 30 debt listings during the year, 29 listings were undertaken by entities in the finance and banking sector, while one listing originated from the infrastructure sector.

In value terms, issuances from the finance and banking sector amounted to approximately USD 4.40 billion, 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).

The predominance of financial sector issuers is consistent with global market practices, where financial institutions actively access debt markets to diversify funding sources, optimise funding structures and manage asset-liability requirements.

The issuer base comprised a mix of established market participants and repeat issuers.

Figure 3.4.a: Sectoral Distribution of Debt Issuances during FY2025–26

Figure 3.4.b: Listing Volume by Sector (USD Million) FY2025–26

3.5 Top Issuers

Debt listing activity during FY2025–26 was supported by a diverse group of issuers that utilised IFSC to access international investors and raise funding through debt capital market instruments.

through debt capital market instruments.

Among all issuers, Muthoot Finance Limited emerged as the largest issuer by listing volume during FY2025–26, raising USD 1.35 billion, accounting for 26 per cent of total debt listings during the year. Export-Import Bank of India, Mumbai International Airport Limited, Sammaan Capital Limited and ReNew Treasury IFSC Private Limited were among the other major issuers by listing volume.

A notable feature of the year was the 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 active issuer, accessing the market on seven occasions during the financial year. Muthoot Finance Limited completed three listings, while Export-Import Bank of India, Annapurna Finance Private Limited and Aye Finance Limited each undertook two listings. In total, nine issuers accessed the market more than once during FY2025–26.

Issuer	USD Mn	Share
Muthoot Finance	1,350	26%
Exim Bank	1,000	19%
Mumbai International Airport	800	15%
Sammaan Capital	750	14%
ReNew Treasury IFSC	600	12%

Figure 3.5.a: Top Five Issuers by Issuance Volume during FY2025–26

Frequency Issuers

7 Listings DFCC Bank PLC

3 Listings Muthoot Finance Limited

2 Listings

Export-Import Bank of India Annapurna Finance Pvt Ltd.Aye Finance Ltd. AllianceFinance Company Credit Access Grameen Ltd. Sammaan Capital Ltd. VedikaCredit Capital Ltd.

Table 3.5.b: Repeat Issuers during FY2025–26

3.6 Instrument Profile

Debt listings admitted to listing during the year, comprise of 17 fixed-rate instruments, 10 floating-rate instruments and 3 zero-coupon instruments (Figure 3.6). While fixed-rate instruments accounted for the highest number of listings, they also represented approximately USD 5.07 billion, or 97.5 per cent of the total debt listing value during the year. Floating-rate instruments accounted for USD 127 million, whereas zero-coupon instruments represented only a marginal share of the overall market.

Figure 3.6: Distribution of Debt Instruments by Number of Listings during FY2025–26

Fixed-rate bonds carried coupon rates ranging from 4.5 per cent to 12.0 per cent. Floating-rate instruments were predominantly linked to the Secured Overnight Financing Rate (SOFR) and were issued at spreads ranging from SOFR +2.40 per cent to SOFR +4.95 per cent.

3.7 Currency Profile

During FY2025–26, debt listings remained predominantly denominated in the United States Dollar (USD), with more than 99 per cent of the total listing value raised in USD. The remaining listing was denominated in Sri Lankan Rupee (LKR).

3.8 Maturity Profile

The maturity profile of debt securities listed during FY2025–26 reflects a range of funding tenors available to issuers through the IFSC debt market.

As illustrated in Figure 3.8, debt listings were distributed across maturities from 2027 to 2036, with the highest number of listings maturing in 2028, followed by 2030.

Figure 3.8: Maturity Profile of Debt Listings during FY2025–26

3.9 Issue Size Distribution

Debt listings during FY2025–26 comprised a wide range of issue sizes, reflecting the ability of the IFSC debt market to facilitate both smaller fund­raising requirements and large cross-border debt transactions.

As shown in Table 3.9, 14 debt listings were for amounts of up to USD 10 million, 6 were between USD 11 million and USD 100 million, and 10 exceeded USD 100 million. While large issuances represented only one-third of the total number of listings, they accounted for approximately 96 per cent of the total listing value during the year.

Issue Size	No. of Listings	Listing Value(USD Mn.)
Up to USD 10 Mn.	14	57
USD 11–100 Mn.	6	145
Above USD 100 Mn.	10	5000
Total	30	5202

Table 3.9: Distribution of Debt Listings by Issue Size

3.10 Placement Method

The debt market at IFSC continues to be predominantly institutional in nature. During FY2025–26, all 30 debt listings were undertaken through private placement, reflecting the participation of professional and institutional investors.

4. 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 environmental and social objectives. As investment requirements associated with the transition to a low-carbon economy continue to grow; sustainable debt instruments have emerged as an important source of long-term financing.

Against this backdrop, IFSC has emerged as a platform for sustainability-oriented capital raising through a globally aligned regulatory framework for listing of ESG-labelled debt securities. The continued growth of ESG-labelled debt listings and the introduction of new sustainable finance initiatives reflect the increasing importance of sustainable finance within the IFSC debt market ecosystem.

4.2 Growth of ESG-labelled Debt Listings at IFSC

Sustainable finance has emerged as an important segment of debt market activity at IFSC, with a steady increase in the use of ESG-labelled debt instruments by issuers seeking to access international capital.

As of March 31, 2026, cumulative ESG-labelled debt listings at IFSC reached USD 16.80 billion. During FY2025–26, cumulative ESG listings increased from USD 15.43 billion to USD 16.80 billion, representing a 9% year-on-year growth.

While cumulative listings reflect the overall expansion of the sustainable finance ecosystem, annual listing activity provides insights into year-to-year market dynamics and issuer participation.

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.

4.3 ESG-labelled Bond Framework at IFSC

The development of sustainable finance at IFSC has been supported by a regulatory framework aligned with internationally recognised market practices

The IFSCA (Listing) Regulations, 2024 provide a framework for the listing of ESG-labelled debt securities within IFSC. The framework facilitates the listing of Green Bonds, Social Bonds, Sustainable Bonds and Sustainability-linked Bonds, thereby enabling issuers to access capital for activities that contribute to environmental and social objectives.

To ensure alignment with global market practices and investor expectations, the framework recognises internationally accepted principles and standards, including the International Capital Market Association (ICMA) Principles and Guidelines, Climate Bonds Standard, ASEAN Standards and European Union Standards. The framework also provides flexibility for recognising other methodologies and standards as may be specified by IFSCA from time to time.

4.4 ESG Instrument Composition during FY2025–26

As illustrated in Figure 4.4, Social Bonds constituted the largest category of ESG-labelled debt listings during the year. Social Bond listings amounted to USD 756.63 million, while Green Bond listings totalled USD 617.94 million.

Figure 4.4: Composition of ESG-labelled Debt Listings during FY2025–26

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.

4.5 Transition Finance: The Next Phase of Sustainable Finance

As global climate financing needs evolve, increasing attention is being directed towards transition finance to support hard-to-abate sectors in their transition towards lower-carbon operations.

Recognising this emerging need, IFSCA introduced the Framework for Transition Bonds on July 29, 2025. The framework facilitates capital raising by entities undertaking credible transition efforts while promoting appropriate standards of transparency and disclosure.

The introduction of the Framework for Transition Bonds expands the range of sustainable finance instruments available at IFSC and strengthens its position as a platform for supporting the transition to a low-carbon economy.

5. MARKET INFRASTRUCTURE SUPPORTING GROWTH

The growth of a debt market is closely linked to the strength of the ecosystem that supports issuance, settlement and other market functions. This chapter examines the institutions that form this ecosystem and their contribution to the development of the debt market at IFSC.

5.1 Building a Complete Debt Market Ecosystem

The growth of debt markets at IFSC has been supported by the development of a complete ecosystem comprising exchanges, depositories, debenture trustees, investment bankers, credit rating agencies and other professional service providers.

Together, these institutions facilitate the complete lifecycle of debt securities from structuring and issuance to listing, settlement and post-listing compliance enabling issuers to access international investors through an efficient and globally aligned market framework.

5.1.1 International Exchanges

Stock exchanges play a central role in facilitating debt listings and connecting issuers with investors. IFSC is home to two recognised international stock exchanges:

• • India International Exchange (India INX)
  • NSE International Exchange (NSE IX)

These exchanges provide internationally recognised listing venues for debt securities and support a wide range of capital market activities. Their presence has been instrumental in the development of debt markets at IFSC by providing issuers with efficient access to international investors and facilitating listing activities across diverse financing structures.

During FY2025–26, debt listings were distributed across both exchanges, reflecting active participation by market participants and the complementary role played by the two institutions in supporting market development.

These exchanges provide internationally recognised listing venues for debt securities and support a wide range of capital market activities. Their presence has been instrumental in the development of debt markets at IFSC by providing issuers with efficient access to international investors and facilitating listing activities across diverse financing structures.

During FY2025–26, debt listings were distributed across both exchanges, reflecting active participation by market participants and the complementary role played by the two institutions in supporting market development.

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, aggregating USD 5.07 billion, were settled through international CSDs, including Euroclear, Clearstream and CDS Pvt. Limited (Figure 5.2).

Figure 5.1.2 Depository Distribution of Debt Listings

5.1.3 Debenture Trustees

IFSC has five IFSCA-registered Debenture Trustees, providing trustee services for debt securities listed at IFSC.

During FY2025–26, 17 debt listings appointed foreign trustees, while 12 listings utilised IFSC-based trustees. (Figure 5.1.3).

5.1.4 Credit Rating

Credit ratings support investor decisionmaking, enhance market transparency and facilitate efficient pricing of debt securities.

As on March 31, 2026, two Credit Rating Agencies registered with IFSCA. During FY2025–26, 29 of the 30 debt listings, aggregating approximately USD 5.15 billion, obtained credit ratings from a combination of regional and globally recognised rating agencies, including CareEdge Global Ratings, S&P Global Ratings, Moody’s Ratings, Fitch Ratings, Fitch Ratings Lanka Limited and Lanka Rating Agency Limited.

The distribution reflects the use of both IFSC-based and international trustee arrangements, providing issuers with flexibility to structure debt transactions in line with market requirements.

Figure 5.1.3 Trustee Jurisdiction Distribution

6. 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 thegrowing maturity and internationalisation of the IFSC debt market.

6.1 Strategic International Partnerships

International financial services centres thrive on connectivity. In recognition of this, exchanges operating within IFSC continued to strengthen relationships with leading international exchanges during FY2025–26 through strategic cooperation arrangements and memoranda of understanding.

These collaborations are intended to facilitate knowledge sharing, strengthen market connectivity, promote cross-border capital market activities and enhance engagement between issuers, investors and intermediaries across jurisdictions. They also support the broader objective of positioning IFSC as a globally connected financial centre capable of serving international capital market participants.

During the year, exchanges operating in IFSC expanded their international engagement through collaborations with stock exchanges and market institutions across Europe, Asia and Africa. Notable partnerships included engagements with the Cyprus Stock Exchange, Colombo Stock Exchange, AFRINEX Exchange and Taiwan Stock Exchange.

These arrangements are expected to support greater market access opportunities, encourage international participation and contribute to the integration of IFSC with global capital markets.

important 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, treasury management and international capital-raising activities.

Figure 6.1.b: MOU signing between INDIA INX and Taiwan Stock Exchange.

Figure 6.1.c MOU Signing between NSEIX and Colombo Stock Exchange during.

6.2 Notable Transaction: ReNew Treasury IFSC

One of the most significant developments during FY2025–26 was the successful listing of a USD 600 million Green Bond by ReNew Treasury IFSC Private Limited. The transaction marked the first foreign currency bond issuance by an IFSC-incorporated entity representing an

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 IFSC-based treasury centre, supported by an internationally aligned regulatory framework, efficient market infrastructure and the tax framework available within IFSC.

The successful execution of the transaction establishes a replicable model for corporates seeking to centralise treasury operations and access international pools of capital through GIFT IFSC.

Figure 6.2: Bell-ringing ceremony

commemorating the first foreign currency bond listing by an IFSC-incorporated treasury centre.

6.3 Notable Transaction: 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 growing attractiveness of IFSC as a platform for regional issuers seeking access to international investors and reinforced its role as a gateway connecting South Asian issuers with global capital markets.

From 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.

The successful listing provides an important precedent for future participation by overseas issuers and strengthens IFSC’s position within the regional capital market landscape.

Figure 6.3 Listing ceremony marking the first foreign corporate debt listing by a Sri Lankan issuer on an exchange operating in IFSC.

6.4 Concluding Remarks

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.

7. 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 Environment

The global macroeconomic environment in FY 2026–27 is expected to remain broadly supportive, notwithstanding continued uncertainties arising from geopolitical developments, trade dynamics, and evolving global monetary conditions. Against this backdrop, India’s macroeconomic fundamentals are projected to remain resilient. According to the International Monetary Fund (IMF), India’s real GDP is projected to grow by 6.5% in 2026, while average consumer price inflation is expected to moderate to 4.7%.

India’s resilient macroeconomic outlook is expected to support growing financing requirements across infrastructure, renewable energy, manufacturing, financial services and the broader energy transition. As demand for long-term capital increases, GIFT IFSC is well positioned to facilitate cross-border debt financing and international capital mobilisation, supporting higher levels of debt issuance and listing activity during FY 2026–27.

7.2 Policy and Regulatory Drivers

The regulatory and policy environment is expected to remain one of the strongest structural drivers of debt market growth in FY 2026–27. Recent regulatory and fiscal initiatives are expected to strengthen the competitiveness of GIFT IFSC, enhance long-term investor confidence, and support continued growth in debt market activity.

The concessional withholding tax rate of 9% has been a significant factor in attracting market participants to GIFT IFSC. Building on this competitive tax framework, the Union Budget 2026–27 introduced further measures to strengthen the long-term attractiveness of the IFSC ecosystem. The Hon’ble Finance Minister announced the extension of the tax holiday for eligible IFSC businesses from 10 consecutive years out of 15 years to 20 consecutive years out of 25 years, followed by a concessional corporate tax rate of 15% thereafter. These measures provide greater long-term tax certainty and are expected to enhance investor confidence, particularly for businesses involving long-gestation investments.

The extended tax incentives are likely to encourage greater participation by long­term investors in capital-intensive sectors such as aircraft leasing, ship leasing, infrastructure financing, and other large-scale asset classes through GIFT IFSC, thereby supporting the continued expansion of the jurisdiction as a global financial centre.

7.3 External Commercial Borrowing (ECB) Reforms

The evolving External Commercial Borrowing (ECB) framework is expected to be an important catalyst for debt market growth in FY 2026–27. The Revised ECB Framework seeks to liberalise India’s ECB regime by simplifying borrower eligibility, standardising the Minimum Average Maturity Period (MAMP), easing end-use provisions, enhancing operational flexibility and strengthening the reporting and compliance framework.

Key measures include:

• Expansion of borrower eligibility to any person resident in India—other than an individual—that is incorporated, established or registered under a Central or State Act and permitted under applicable law, thereby making Limited Liability Partnerships (LLPs) eligible to raise ECB.
• Standardisation of the Minimum Average Maturity Period (MAMP) at three years, replacing the earlier end-use linked maturity requirement of three to ten years.
• Permission for manufacturing entities to raise ECB with a minimum average maturity period of one to three years, subject to an outstanding borrowing limit of USD 150 million.
• Enhancement of the ECB borrowing limit from USD 750 million to the higher of USD 1 billion outstanding or 300% of the borrower’s net worth on a standalone basis, while continuing to exempt eligible borrowers regulated by financial sector regulators.

These reforms are expected to enhance the efficiency and flexibility of India’s external borrowing framework. A more liberal ECB regime could improve access to foreign currency financing for Indian corporates and financial institutions, increase demand for international debt instruments and support higher levels of debt issuance and listing on IFSC exchanges, further strengthening GIFT IFSC’s position as a preferred international capital-raising platform.

7.4 Future Market

Development Initiatives

In order to develop the corporate bond market in IFSC, Standing Committee on Primary markets has also recommended IFSCA to explore the following:

• To establish electronic book building platform similar to electronic book provider platforms for debt securities in domestic India.
• Establish connectivity of Depository in IFSC with International Central Securities Depositories
• To establish Request for Quote platform similar to Request for Quote platform in domestic jurisdiction
• Creation of bond indices and bond derivatives for hedging
• Creation of tokenized bonds by issuers in IFSC

7.5 Expected Growth Drivers

DFCC Bank PLC, Sri Lanka, became the first foreign corporate issuer to list Blue Bonds on IFSC stock exchanges, marking an important milestone in the geographical diversification of the market. The transaction reinforces GIFT IFSC’s growing appeal as an international fundraising platform and could catalyse debt issuances by corporates and financial institutions across Asia, Africa and other emerging markets.

Looking ahead, growth is expected to be supported by:

• Effective implementation of the External Commercial Borrowing (ECB) reforms and the RBI’s FX swap facility, supporting higher overseas bond issuances;
• Greater participation by banks, large corporates and financial institutions in raising international debt through GIFT IFSC;
• Continued increase in the number of foreign issuers accessing the IFSC capital markets;
• Expansion of treasury-centre financing and cross-border funding arrangements;
• Greater utilisation of Medium-Term Note (MTN) programmes and repeat issuances;
• Continued growth in sustainable finance, including green, social, sustainability, sustainability-linked and blue bonds;
• Increased investor confidence supported by India’s sovereign rating upgrades; and
• A broader issuer base, including infrastructure financing and other emerging sectors.

Disclaimer:

While efforts have been taken to make this report as accurate as possible, please refer to the official websites of recognised stock exchanges at the IFSC for official data relating to listing. IFSCA is not responsible for accuracy of data/ information/ interpretations and opinions expressed in this report. IFSCA has no objection to the material published herein being reproduced, provided an acknowledgement of the same is made.

Comments and Suggestions:

Any comments and suggestions on this report may be sent to the following email ids:

Name	Email ID
Rishikesh Wandhekar	rishikesh.wandhekar@ifsca.gov.in
Akash Boddeda	akash.boddeda@ifsca.gov.in
Pawan Kumar Chowdhary	pawan.kc@ifsca.gov.in
Arjun Prasad	arjun.pd@ifsca.gov.in
Pradeep Ramakrishnan	pradeep.ramakrishnan@ifsca.gov.in