For the first time in more than two years, Axis Bank is expected to raise capital through the infrastructure bond market, according to two bankers on Monday.

"The private lender will raise around 40 billion rupees ($482.70 million) through 10-year bonds and will invite bids for the bond issue before the end of this week," according to a banker.

Axis Bank has not officially announced the bond offering and did not respond to Reuters' request for comment.  

Long-term development initiatives are financed by the issuance of infrastructure bonds.

This quarter, Axis Bank will raise money through infrastructure bonds, following in the footsteps of banks like Bank of Baroda and Kotak Mahindra Bank.

With the exception of financial institutions, banks have raised more than 544 billion rupees this fiscal year from the issuance of infrastructure bonds—nearly twice as much as they did the previous fiscal year, when they raised 296 billion rupees.

26 billion rupees were raised by Axis Bank through infrastructure bonds that mature in December 2021 and are ten years old. The bank raised 120 billion rupees in December 2022 by offering Tier-II notes with a 7.88% coupon that are Basel III compliant and mature in ten years.