ICICI Bank enters international bond market with nearly Rs 3,346.25 crore issue

The country's largest private sector lender ICICI Bank has hit the international bond market with a $500-million (Rs 3,346.25 crore) issue. The bond sale is part of the bank's $7.5-billion (nearly Rs 50,193.75 crore) global medium-term note programme and is the first from a private sector domestic financial institution this year.

"ICICI Bank is in the overseas debt market with a planned $500 million (nearly Rs 3,346.25 crore) bond sale which will have a 10-year maturity. The bank has given a pricing guidance of 230 basis points above the US treasury," industry sources told PTI on Monday.

When contacted, the city-headquartered lender refused to comment, saying the issue is yet to be closed. The sources said the 10-year fixed yield issue will be sold through the bank's Dubai International Finance Centre branch and will be closed on Monday's night.

Global rating agencies Moody's and S&P have given 'Baa3' and 'BBB-' long-term ratings respectively to the issue. Both ratings are investment grade, indicating the adequate ability of an entity to meet financial commitments.

In a note, Standard & Poor's (S&P) said the proposed US-dollar-denominated senior unsecured notes by ICICI Bank carried 'BBB-' rating, which reflects the long-term counterparty credit rating on the bank.

Moody's Investors Service has assigned 'Baa3' with a positive bias issued under its $7.5 billion (nearly Rs 50,193.75 crore) global medium-term note programme. "The drawdown will be carried out from its Dubai International Financial Centre branch, and the bonds will be listed on the Singapore Stock Exchange", Moody's said, adding that the outlook on the ratings, where applicable, is positive.

It said the 'Baa3' rating is anchored on ICICI's 'Baa3' baseline credit assessment, which is underpinned by the bank's solid franchise as the country's largest private sector lender by assets, as well as its strong capitalisation, liquidity and earnings profile.

ICICI Bank