ICICI Bank raises US$2 billion

ICICI Bank Ltd has announced that the Bank successfully priced the first three tranche bond offering by an Indian bank, comprising a cumulative subordinated notes offering of US$ 750 million qualifying as Upper Tier II capital and dual tranche Senior Notes consisting of three-year US$ Floating Rate Notes of US$ 500 million and five-year US$ Fixed Rate Notes of US$ 750 million. The offerings were lead managed by Citigroup, Deutsche Bank Securities and Merrill Lynch International.

This is the largest bond offering by an Indian bank. The aggregate US$ 2.0 billion offering had an order book of over US$ 8.0 billion with strong interest from investors. About 58% of the notes were sold into the US while Asia and Europe contributed for about 21% each. The notes were sold under the Rule 144A/Reg S format.

Mr. K V Kamath, Managing Director & CEO, of the Bank said, "We are indeed pleased to receive such an overwhelming response to this offering which is the first of its kind. This is a remarkable recognition of the India story and ICICI Bank's strategy by the investor community. India is witnessing a paradigm change in its growth trajectory and its position in the world and the international investors' appetite for Indian credit is an affirmation of this trend."

The Upper Tier II notes carry a coupon of 6.375% and were priced at a spread of 128 basis points over LIBOR. These notes will mature after 15 years but are redeemable at the option of the Bank after ten years with prior approval of the Reserve Bank of India.

The three-year floating rate notes of US$ 500 million were priced at a spread of 54 basis points over 3 month LIBOR. The Bank is the first Indian Bank to offer a floating rate note under the Rule 144A/ Reg S format.

The five-year fixed rate notes carry a coupon of 5.75% and were priced at a spread of 75 basis points over LIBOR. All the tranches were priced inside the tighter end of the initial price guidance and at the tighter end of the revised price guidance.

The proceeds from this issue will be used to fund the Bank's regular growth requirements both domestically and internationally and to enhance the Tier II capital.

Source : Equity Bulls

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