$500 million bonds of ICICI to hit the international debt markets
ICICI bank is planning to raise its foreign exchange capability of funding by hitting the international market with a $500 million bonds. They are selling 10-year dollar bonds with a view that they would be able to service demands for loans from companies in the overseas market. The company’s $7.5 billion global medium term note program is a part of the bonds sale. Also a point to be noted is that it is the year’s first private sector domestic financial institution. The sale of the bonds is being done through Dubai International Finance centre branch, where it is opened to the investors in Asia on Monday morning and it is likely to be closed after receiving tenders for the same from US in the evening. The money that would be raised through this issue would be used to provide loans to the Indian companies abroad. However, a flat yield curve indicates that the difference between five-year and ten-year term is not copious. The inceptive advice for the bond is 230 basis point, which would be above the 10 year US treachery. The value of one basis point comes to 0.01 percentage. However, the standard 10-year US bond closed at 1.97 on Friday, which means the bond price would be probably priced at 4.27 percent. The US treachery of five years ended at 1.49% on Friday. The bankers to the issues are Citibank, Barclays, HSBC, Credit Agricole, Bank of America-Merrill Lynch and Bank of Tokyo-Mitsubishi UFG. Moody’s and S& P the global rating agencies have rated a Baa3 and BBB- long term ratings to the issue, supporting the bank’s solid permit, liquidity, capitalisation and earnings profile.
March 15, 2016 | 03:15pm IST