ICICI raises $1 billion, Union Bank $600 million through dollar bonds
ICICI Bank raised $1 billion through a five-year private dollar bond, while Union Bank of India secured $600 million in its first international dollar issue in over a decade, benefiting from RBI’s special swap window. UCO Bank also approved a $1 b...
By Joel Rebello, ET Bureau |
ET Online
ICICI Bank has raised $1 billion by privately placing a five year bond with HSBC on Monday at 5.41% coupon, people familiar with the details said. The is the second dollar bond by the private sector bank within a week after it raised $750 million through a five year public issue on August 17.
Separately, public sector Union Bank of India has raised $600 million by selling its first international dollar bond in more than a decade as it became the latest among multiple Indian banks to take advantage of the special Reserve Bank of India (RBI) swap window.
The bank raised $300 million each by selling three year and five year dollar bonds in a public issue marketed to international investors in Asia and Europe. “The three year bond was priced at 93 basis points above the three year US treasury while the five year issue was priced at 102 basis points above the five year US treasury. Both bond were priced at a rate tighter than the initial price guidance issued by the bank earlier today with a order book of $4.7 billion,” said a person aware of the details. One basis point is 0.01 percentage point.
Earlier on Monday, Union Bank had set a guidance of 120 basis points above the three year US security for the three year bond and 130 basis points above five year US treasury guidance. With the three year US treasury trading around 4.29% and five year US treasury around 4.39% Union Bank is likely to raise three year money at 5.22% and five year money at 5.41%. Union Bank did not reply to an email seeking comment.
For ICICI this is the third bond issue since the RBI opened a special swap window for banks in June. In July, India’s second-largest private sector lender had raised $1 billion through a similar five-year bond, its first public dollar bond issuance since 2017. On August 17, it raised a further $750 million by selling five year bonds at around 5.42% coupon. Both ICICI and HSBC did not reply to separate emails seeking comment.
Meanwhile, the UCO Bank board approved raising of $ 1 billion, in one or more tranches, through the bank’s medium term note programme.
Separately, public sector Union Bank of India has raised $600 million by selling its first international dollar bond in more than a decade as it became the latest among multiple Indian banks to take advantage of the special Reserve Bank of India (RBI) swap window.
The bank raised $300 million each by selling three year and five year dollar bonds in a public issue marketed to international investors in Asia and Europe. “The three year bond was priced at 93 basis points above the three year US treasury while the five year issue was priced at 102 basis points above the five year US treasury. Both bond were priced at a rate tighter than the initial price guidance issued by the bank earlier today with a order book of $4.7 billion,” said a person aware of the details. One basis point is 0.01 percentage point.
Earlier on Monday, Union Bank had set a guidance of 120 basis points above the three year US security for the three year bond and 130 basis points above five year US treasury guidance. With the three year US treasury trading around 4.29% and five year US treasury around 4.39% Union Bank is likely to raise three year money at 5.22% and five year money at 5.41%. Union Bank did not reply to an email seeking comment.
For ICICI this is the third bond issue since the RBI opened a special swap window for banks in June. In July, India’s second-largest private sector lender had raised $1 billion through a similar five-year bond, its first public dollar bond issuance since 2017. On August 17, it raised a further $750 million by selling five year bonds at around 5.42% coupon. Both ICICI and HSBC did not reply to separate emails seeking comment.
Meanwhile, the UCO Bank board approved raising of $ 1 billion, in one or more tranches, through the bank’s medium term note programme.
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