The Mumbai-based bank, which raised $1.5 billion in overseas loans this month, hired Goldman Sachs Group Inc, Deutsche Bank AG and Merrill Lynch & Co to arrange the bond sale, according to an e-mail sent to investors. ICICI plans to set terms on the benchmark sized offering during New York trading hours, the e-mail shows.
ICICI is tapping the debt market after the US Federal Reserve cut the benchmark rate for overnight borrowing by half a percentage point to 4.75% on September 18. Investors have so far placed orders for $2 billion of the securities, according to the e-mail. I am glad to see the primary market finally reopening, said Clifford Lau, a Singapore-based portfolio manager at Pramerica Fixed Income, which manages $7.6 billion in emerging market assets. There are a lot of issues waiting to be re-launched. ICICI is seeking to price the bonds to yield about 2.375 percentage points more than Treasuries of similar maturity, the e-mail shows.