ICICI Bank, India’s largest private sector bank, will raise up to $500 million (over Rs 3,000 crore) by selling five-year dollar bonds to overseas investors.
The issue opened earlier on Wednesday and will be closing by late evening, after which the final pricing will be known.
The initial pricing guidance for the issue is 180 basis points above the five-year US treasury yield. On Tuesday, five-year US treasury notes closed at a yield of 1.625 per cent. One basis point is 0.01 percentage point.
This year, it is ICICI Bank’s first dollar bond and it has previously raised $500 million in September last year, tapping the same issue again in December by $200 million, said a person familiar with the development.
It is part of the bank’s $7.5 billion MTN (medium-term note) programme and the issue will be originated from the bank’s Dubai branch.
“This is an opportunistic issue. The bank does not need the money urgently but the market is constructive and the pricing is better,” the person added.
Hongkong and Shanghai Banking Corp (HSBC), Barclays, JP Morgan Chase and Co, Bank of America-Merrill Lynch and Standard Chartered are the bankers to the issue.