ICICI Bank to raise Rs 5 bn
ICICI Bank has introduced regular income bonds for retail investors to raise up to Rs 5 billion. This move comes after the launch of debt instruments in various overseas markets.
The bank would raise funds in the nature of Tier II capital through the issue of unsecured redeemable bonds. In case the offering is oversubscribed, it has an extendable limit for an additional Rs 5 billion. The issue opened on Sepyember 29 and will close on October 12.
This bonds issue, first in the country by the bank this year, follows a five-year USD 2 billion borrowing by the bank in various overseas markets.
In a filing to the National Stock Exchange last week, the bank said that it has so far in the current fiscal raised about 6 billion dollar through debt and about 5 billion dollar through equity.
Under the issue, the bank would offer 4 types of bonds, which will be listed on BSE and NSE.
The instruments, with a term ranging from 5 years and 3 months to 10 years, have been assigned the `highest safety` rating by credit rating agencies ICRA and CARE with regard to timely payment and interest.
JM Financial Consultants, Enam Financial Consultants, DSP Merrill Lynch and ICICI Securities are the lead managers of the issue. Almondz Global Securities, Bajaj Capital and Karvy Investor Services are the co-lead managers.
In 5 years 3 months tenure option, the annual coupon rate offered is 9.8% (9.39% for the monthly interest payment option). For the 10-year bonds, the rate is 10% (9.57% for monthly interest payment).
ICICI Bank also plans to issue commercial papers through its offshore banking unit in Mumbai, Hong Kong branch and Bahrain branch, and use the proceeds for general corporate purposes.