The Hindu Business Line : ICICI Bank raises $2 b thru overseas bond issue

These include a cumulative subordinated notes offering of $750 million qualifying as Upper Tier II capital and dual tranche senior notes consisting of three-year floating rate notes of $500 million and five-year fixed rate notes of $750 million.

The Upper Tier II notes carry a coupon of 6.375 per cent and were priced at a spread of 128 basis points over LIBOR. These notes will mature after 15 years but are redeemable at the option of the bank after ten years with prior approval of the Reserve Bank of India.

The three-year floating rate notes of $500 million were priced at a spread of 54 basis points over 3-month LIBOR.

The five-year fixed rate notes carry a coupon of 5.75 per cent and were priced at a spread of 75 basis points over LIBOR.

All the tranches were priced inside the tighter end of the initial price guidance and at the tighter end of the revised price guidance, said a bank press release.

The offerings were lead managed by Citigroup, Deutsche Bank Securities and Merrill Lynch International. This is the largest bond offering by an Indian bank.

The aggregate $2-billion offering had an order book of over $8 billion with strong interest from investors. About 58 per cent of the notes were sold into the US while Asia and Europe contributed for about 21 per cent each.

Mr K.V. Kamath, Managing Director & CEO, was quoted in a release: "We are indeed pleased to receive such an overwhelming response to this offering which is the first of its kind.''

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