ICICI Bank raises $500 million in overseas bond sale at 3.83%

Private sector lender ICICI Bank has raised USD 500 million in a benchmark bond sale to overseas investors at a coupon of 3.833 per cent.

The USD 500-million ten-year US dollar money was issued through the Dubai branch of ICICI Bank. The bonds were sold at an attractive pricing of 3.83 per cent per annum, an investment banking source told PTI today.

The RegS issue (bonds sold in the US but to non- American investors) is part of the country's largest private sector lender's USD7.5 billion global medium term note programme.

The bank has initially given a price guidance of 170 basis points over the US treasury but due to high demand, the pricing came down by 20 basis points to 150 basis points over the US treasury offering a yield of 3.833 per cent to the investor, the i-banker said.

International rating agency Moody's has assigned a Baa3 rating to the issue with a stable outlook, in line with the agency similar rating and outlook on the bank.

Moody's said the senior unsecured notes, drawn from the bank's Dubai branch will be listed on the Singapore Stock Exchange.

The bank counter closed 1.49 per cent up at Rs 310.55 on the BSE whose benchmark index Sensex rallied 301.09 points or 0.91 per cent.

Citigroup was the sole advisor to the deal.