ICICI Bank has raised $1 billion through its first dollar bond sale, according to the Economic Times.

The bank’s inaugural overseas dollar bond transaction drew strong investor demand, enabling ICICI Bank to double the size of the offering from its initial plan. The sale was described as a sign of global investor confidence in Indian bank credit.

Following the transaction, other lenders are preparing to raise dollar bonds in overseas markets using a subsidized hedging facility. The initiative is aimed at reducing borrowing costs and supporting capital inflows into India. For banks, overseas bonds can broaden the funding base beyond domestic markets, but the final economics depend not only on the coupon paid to investors but also on the cost of converting and hedging foreign-currency exposure.

Dollar bonds allow issuers to borrow in U.S. dollars from international investors. For Indian banks and companies, hedging is commonly used to manage the currency risk that arises when debt is raised in a foreign currency while revenues and assets are largely denominated in rupees. That makes the availability and pricing of hedging a key factor to watch as more Indian lenders consider overseas issuance.