Tuesday , October 16 2018

ICICI Bank Sells its Bonds to Raise $300 Million

ICICI Bank, India’s largest private sector lender, has raised $300 million through an international bond issue


ICICI Bank’s branch in Dubai International Finance Centre (DIFC) has issued the 5.5 year fixed rate notes, which carries a coupon of 3.25 per cent, it said in a statement.

ICICI Bank, Country’s largest private sector lender, declared that it has raised $300 million by virtue of an international bond issue. It was an deal with an issue price of 99.447 and the notes were sold under the RegS format.

The bank had given a pricing guidance of up to 155 bps over the US treasury which is around 2 per cent, and the 3.25 per cent coupon reflects an ability to compress the pricing.

The issue was launched by the bank,  and it is a  part of its $7.5 billion medium-term notes programme, yesterday. In general, the money raised through such offerings is used for international loaning. S&P and Moody’s, the Global rating agencies, rated the senior unsecured notes at BBB- and Baa3, respectively.

S&P said, that assigning BBB- rating to it, reflects the long-term issuer credit rating on the largest private sector bank in the country.

On the other hand, Moody’s Investors Service disclosed that the Baa3 rating, issued under its $7.5 billion MTN programme has a maturity period of 5.5 years and will be listed on the Singapore Stock Exchange.

The past two years have observed that the debt raising by domestic companies has obtained a low gear due to the poor investment climate here. Approximately half a dozen companies have raised around $1.82 billion from overseas markets in the month of January this year.

$1.40 billion from the amount was the foreign debt in January and the remaining were funds raised by virtue of rupee-denominated bonds, as observed from the Reserve Bank of India data.

Rural Electrification Corporation raised $400 million for on-lending under the ECB route and NTPC raised $531.2 million and Adani Ports & Special Economic Zone raised $500 million.


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