The country?s largest private sector lender ICICI Bank is set to sell 10-year US dollars denominated bonds.
Though amount of resources to be raised by the bank has not yet been disclosed, Bloomberg said it might be at least $500 million. The proposed issue will be made through the bank?s Hong Kong branch. The proceeds will be used for general corporate purposes in accordance with applicable rules or regulations. The bank is offering the notes to investors at a yield of about 335 basis points more than similar-maturity US Treasuries, said sources. Barclays Plc, Citigroup Inc and Deutsche Bank AG are managing the issue , Bloomberg reported on Monday.
According to a note by global rating agency S&P, ICICI Bank will have an option to redeem the notes at any time, at a ?make whole? redemption price, i.e. the price that is equal to the greater of: 100% of the principal amount of such notes; or the present value of the balance scheduled principal and interest payments discounted at the Treasury rate plus 50 basis points.
In addition, the issuer has the option to redeem the notes if it has or will become obliged to pay additional amounts on account of a change in tax laws that require the issuer to deduct tax.