ICICI Bank hits overseas bond market with benchmark issue

Issue arrangers say final guidance for issue has been set at 360 basis points above US treasuries

India's second largest lender, ICICI Bank has hit the overseas bond market with a benchmark issue on Monday. The bank plans to raise at least $ 500 million by way of 5.5 years maturity tenure bonds.

According to issue arrangers the final guidance for the issue has been set at 360 basis points above US treasuries.

Global rating agency Standard & Poor’s Ratings Services rated the bonds at “BBB-”. “The rating on the notes reflects the long-term counterparty credit rating on the bank,” S&P said in a press release on Monday.

The bonds will be listed on Singapore Exchange.

This is the second debt raising by the city-based lender this year after it had raised Singapore Dollar (SGD) 225 million early January in a seven-year bond sale programme through its Dubai branch, offering a coupon of 3.65%. The bond was sold denominated in Singapore dollars.

Last fiscal, ICICI had hit the market five times raising $1 billion in two instalments of $750 million and $250 million, respectively. The bank had also raised a 1 billion yuan bond earlier in 2012 apart from a 100 million Swiss franc bond.