ICICI Bank hits debt market with $500-m issue

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Mumbai | Published: August 6, 2015 12:24:31 AM

ICICI Bank on Wednesday priced its $500-million bonds at 160 basis points over the five-year US treasury yield, sources close to the deal said.

ICICI Bank on Wednesday priced its $500-million bonds at 160 basis points over the five-year US treasury yield, sources close to the deal said.

According to bankers, the bonds will have a coupon rate of 3.125% with a tenure of five years. Bond arrangers indicated this coupon rate could be the lowest ever achieved by the bank.

The issue had an initial price guidance of 180 bps over the US treasury yield, according to sources who also said it was the first dollar-denominated bond issue by the bank this year.

Bankers indicated that the ‘Regulation S’ bond issue was priced at zero new issue premium, meaning the pricing was pretty close to the secondary market rates of the bank’s bonds.

“This issue has managed to navigate all volatility points like Greek crisis, China equity (meltdown) and Fed action. It was quite well-timed to take into account this narrow issuance window ahead of summer holidays,” said a banker close to the deal, adding that this is the first deal out of Asia to have paid no new issue premium over the last couple of months.

Standard & Poor’s Ratings Services assigned its BBB- long-term issue rating to the proposed issue of US dollar-denominated senior unsecured notes.

Moody’s Investors Service has assigned a Baa3 rating to the proposed notes issued under the bank’s $7.5-billion global medium-term note (GMTN) programme. It said in a report that the drawdown will be carried out from the bank’s DIFC’s (Dubai) branch and the bonds will be listed on the Singapore Stock Exchange.

Bank of Amercia Merrill Lynch, Barclays, HSBC, JP Morgan and Standard Chartered were the bankers to

the deal.

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