ICICI Bank to raise up to Rs 1,200 crore via bonds

The country's largest public sector lender, ICICI Bank, is raising up to Rs 1,200 crore by issue of bonds.

The bank plans to raise at least Rs 500 crore by issuing Tier-II bonds, with an option to raise a further amount if the issue is oversubscribed, merchant bankers close to the deal said.

Shares of ICICI Bank closed at Rs 862.70 on the Bombay Stock Exchange, up 0.15 per cent from its previous close at the end of Thursday's trade. The scrip during the trade gained nearly one per cent to touch an intra-day high of Rs 870.

The bank yesterday sold its points of sale (POS) terminal business (debit and credit card payments) to US-based First Data Corporation (FDC) for $80 million (about Rs 400 crore).

The deal took place amid reports that the bank is planning to raise more funds by diluting its stakes in two firms -- 3i Infotech and Firstsource Solutions.

ICICI Bank through its various arms holds 29.97 per cent stake in IT firm 3i Infotech and 26.67 per cent in BPO firm Firstsource Solutions, according to its September quarter shareholding pattern available on the BSE.