ICICI Bank set to raise $500 million by selling dollar bonds
The bonds opened to investors in Asia earlier today and are likely to close later this evening, two people familiar with the deal said.
By Joel Rebello, ET Bureau |
MUMBAI: ICICI Bank, India’s largest private sector bank is set to raise at least $500 million by selling 10-year dollar bonds to global investors through its Dubai International Finance Centre branch.
The bonds opened to investors in Asia earlier today and are likely to close later this evening, two people familiar with the deal said.
“This is a ten year issue which is rare. The bank thinks that there is demand for a long tenure bond. We should be able to close it by this evening,” said a person involved in the deal. Normally, these type of bonds are of five year tenure.
The initial guidance for the bond is 230 basis points above the 10-year US treasury. One basis point is 0.01 percentage point. The benchmark 10-year US bond closed at 1.97% on Friday, which means the bond is likely to be priced at 4.27%.
Barclays, Citibank, HSBC, Bank of America-Merrill Lynch, Credit Agricole and Bank of Tokyo-Mitsubishi UFG are the bankers to the issue. The bonds are part of the $7.5 billion medium term note programme.
Moody’s has assigned a Baa3 rating to the issue.
ICICI did not respond to an email seeking comment.
The bonds opened to investors in Asia earlier today and are likely to close later this evening, two people familiar with the deal said.
“This is a ten year issue which is rare. The bank thinks that there is demand for a long tenure bond. We should be able to close it by this evening,” said a person involved in the deal. Normally, these type of bonds are of five year tenure.
The initial guidance for the bond is 230 basis points above the 10-year US treasury. One basis point is 0.01 percentage point. The benchmark 10-year US bond closed at 1.97% on Friday, which means the bond is likely to be priced at 4.27%.
Barclays, Citibank, HSBC, Bank of America-Merrill Lynch, Credit Agricole and Bank of Tokyo-Mitsubishi UFG are the bankers to the issue. The bonds are part of the $7.5 billion medium term note programme.
Moody’s has assigned a Baa3 rating to the issue.
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ICICI did not respond to an email seeking comment.
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