ICICI Bank to raise $500 million via yen bond in August

ICICI Bank is knocking at Tokyo's door to raise JPY 50 billion which amounts to $500 million at present value. It will be the first pro bond issue by any Indian company in the Samurai market, which means that only professionals can subscribe to it and no retail participation will be allowed.

Sources say that the bond could hit the market as early as first week of August and will be issued in tranches. According to a source close to the development, "The first tranche amount could be as much as JPY 10 bn and depending on the investor appetite the amount will be calculated for further tranches."

Sources also say that ICICI Bank has already completed its road show on July 8 in Tokyo and has made all the necessary arrangements to list the bond on Tokyo stock exchange. The lead bankers to this issue are Barclays and Mizuho Securities. According to a source with direct knowledge, "the tenure of the bond will be 2 years and coupon rate could be around 3.5-4%."

The bond is rated BBB- by S&P and Baa2 by Moody's. ICICI Bank did not respond to any of the queries mailed by ET NOW.

ICICI Bank has been very active in the Asian markets in the recent past and has raised $106 mn of Yuan bonds from the Hong Kong market in June this year as well as $178 mn from Singapore bond market in January, 2013.

A number of banks in the past have been tapping the Asian markets to raise funds, as it proves to be cheaper for them and it also helps them diversify their fund base. Highly rated Indian bonds have also seen good investor appetite in the past.