ICICI Bank is raising around $500 Mn through issue of 5.5 years bonds at 5% in the international market.

The bonds are priced at 275 basis points over LIBOR and will be listed on the Singapore Stock Exchange.

ICICI Bank will utilize the funds for its expansion plans and for general office purpose.

International rating agency Moody’s has assigned a Baa2 rating to the dollar-denominated bonds, which will be issued by the bank through its Hong Kong branch.

ICICI has hired Bank of America Merrill Lynch, HSBC and Deutsche Bank for the deal.

Transaction Reference: ET

This year, ICICI Bank acquired Bank of Rajasthan in a share swap deal at a value of around Rs 3,000 Cr. This was ICICI Bank’s third acquisition after Bank of Madura in 2000-01 and Sangli Bank in 2006-07.

ICICI Bank has an asset base of Rs 3.63 trillion and posted a net profit of Rs 4,025 Cr in 2010. Its CASA deposits accounted for 41.7% of the bank’s total deposits as of end-March 2010 compared with 28.7% one year previously.

ICICI Bank registered a CAR under Basel II of 19.4%, of which 14% was in the form of Tier-1 capital at the end of March 2010.

Last year, ICICI raised $750 Mn through a five year bond issue. ICICI raised the funds by selling bonds to US based investors.

Recently many Indian banks have been raising money through issue of bonds - Indian Bank raised Rs 500 Cr, HDFC bank raised Rs 1,105 Cr Tier II capital, while State Bank of India will be raising Rs 200 Cr in coming months for its Tier-II capital and IDBI Bank Rs 300 Cr through 10-year, lower tier 2 bonds.

Previous Article

KPIT Cummins To Buy German Automotive Company

Next Article

LIC To Invest R125 Cr in Dena Bank For 5% Stake